1. Assume that two securities currently trading in the market, Vantage and Horizon, are correctly priced according to the CAPM's security market line (SML). Vantage has an expected return of 6% and a beta of 0.5, while Horizon has an expected return of 12% and a beta of 1.5. a. Derive the security market line for this market. (3 marks) b. What is the required return of a third security added to the market, Frontier, which has a beta of 2.0