Question: Suppose you observe the following situation: Security Beta Expected Return Diamond Co 1.3 0.2 Spade Co 0.8 0.14 (:1) According to the aboVe information. could

Suppose you observe the following situation: Security Beta Expected Return Diamond Co 1.3 0.2 Spade Co 0.8 0.14 (:1) According to the aboVe information. could we gure out the market return and risk-free rate? Explain your answer. (10 marks) (b) Discuss the possibility of including zero beta or negative beta assets in your portfolio. Explain the pros and cons of including these types of assets. (10 marks)

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