1. Let E(r) denote the expected return on asset i and Bi denote the corresponding beta. In addition, let Erm) denote the expected return on the market portfolio and Bm denote the corresponding beta. Define and sketch the Security Market Line (SML). Hint: Use E(im) - r = 8%, r; = 3%, B. = 1.25 and B2 = 0.6. = [12.5 marks)