Question A financial analyst using the CAPM model on 5 shares obtains the following estimated results: Share Beta 0.2 0.8 0.9 0.36 0,49 0.62 0.82 0.20 0.7 where i is measured by the standard deviation of the error term. The risk free rate of interest is R.-4%, the market rate of return is Rm-12% and the standard deviation of the market is m-0.30. Assume that an investor has equal amounts invested in the five shares so that w (1/N), where N is the number of shares in the portfolio, a) Calculate the B of the portfolio (40] b) The total risk of the portfolio 130] c) Assume that the return of the portfolio is 20%. Calculate the Sharpe ratio for the portfolio. Briefly comment on your results (30 Question A financial analyst using the CAPM model on 5 shares obtains the following estimated results: Share Beta 0.2 0.8 0.9 0.36 0,49 0.62 0.82 0.20 0.7 where i is measured by the standard deviation of the error term. The risk free rate of interest is R.-4%, the market rate of return is Rm-12% and the standard deviation of the market is m-0.30. Assume that an investor has equal amounts invested in the five shares so that w (1/N), where N is the number of shares in the portfolio, a) Calculate the B of the portfolio (40] b) The total risk of the portfolio 130] c) Assume that the return of the portfolio is 20%. Calculate the Sharpe ratio for the portfolio. Briefly comment on your results (30