Question: Q2 Consider a world in which there are only two risky assets, A and B, and a risk-free asset F. The two risky assets are

Q2 Consider a world in which there are only two risky

Q2 Consider a world in which there are only two risky assets, A and B, and a risk-free asset F. The two risky assets are in equal supply in the market; that is, the market portfolio M = }(A+B). The following information is known: rf = 0.10; c o = 0.04; 0 AB = 0.01; of 0.02; and im = 0.18. (a) Find a general expression (without substituting numeric values) for om, Ba, and BB. (b) According to the CAPM, what are the numerical values of TA and Tb

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