The Capital Asset Pricing Model (CAPM) defines a linear relationship between risk and return. Explain the model and what beta tells us about the risk associated with the company operating in the financial system. [04 Marks]Consider the formula below;ERi=Rf+i(ERmRf)If the expected rate of return on the market is 8% and the risk free rate is 3%, a portfolio is expected to have the rate of return of 10%. Calculate beta and explain assumptions concerning the portfolios beta and discuss the limitations of CAPM. [02 Marks] Section B Under conditions of risk, one of the biggest manufacturing company in Zambia, produces two types of washing detergent soaps. For the next years production plan, it has received 50, 500 units of the raw material used in the manufacturing process. Product 1 uses 25 units of the materials while product 2 uses 40 units.Product 1 yields a total contribution of K1, 500 per unit sold and product 2 yields a contribution of K2, 000 per unit sold. The company has a contract that requires at least 800 units of product 1 per year. The production facilities are such that at most only 600 units product 2 may be produced per year.Required:Calculate the production mix that will maximise the companys total contribution received per year using; Graphical Linear Programming [02 Marks]Excel Linear Programming, compare the answers using the two methods [02 Marks]