Consider the three well diversified portfolios below. what will be the arbitrage profit per $10,000 position (long or short) in portfollo A? Portfolio Expected ROR Beta A 20% 2.0 2% -0.2 C 30% 3.0 Multiple Choice $135 $10.5 $40 none of the above.

Assume that the CAPM is true, Rf = 5%,  Rm= 15% σm = 0.1. An investor with $10,000 to invest builds a portfolio, Q, of T-bills and the market portfolio. This means that: a) it would be possible for the investor to obtain a return of 17% on portfolio Q b) if portfolio Q were composed of short-selling $2,000 in T-bills and the remainder is the market portfolio, then Pqm = 1, βq = 1.2 and σq = 0.12 c) to obtain a return of 17% from portfolio Q the investor would need to invest $12,000 in the market portfolio d) all of the above are true e) only a) and b) above are true.  Pls show procedure, thanks

10. Share A and share B has the below returns. Rate of return (%) Rate of return (%) Share A Share B 3 5 7 9 10 8 -3 5 (d) Calculate for each share: iii. Mean returns. iv. Standard deviation of returns. (e) You decided to invest 70% in Share A and 30% in Share B. Calculate your portfolio return and the portfolio risk.

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