Question: Please show and explain work (including formula used) Questions 55 and 56 are based on the following figure. Pour SML 2 Bata 55. According to

Please show and explain work (including formula used)  Please show and explain work (including formula used) Questions 55 and
56 are based on the following figure. Pour SML 2 Bata 55.
According to the figure above, What is the beta for a portfolio

Questions 55 and 56 are based on the following figure. Pour SML 2 Bata 55. According to the figure above, What is the beta for a portfolio with an expected return of 12.5%? B1 C 1.5 D2 56. According to the figure above, what is the expected return for a portfolio with a beta 0.52 A 5% B 7.5% C 12.5% D 15% 46. Consider the single factor APT. Portfolio A has a beta of 1.3 and an expected return of 21%. Portfolio B has a beta of 7 and an expected return of 17%. The risk-free rate of return is 8%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio and a long position in portfolio A. A, A B. AB C.B: A D.BB Questions 55 and 56 are based on the following figure. Retur 15% SML 10% 5% 1 2 Beta

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