1. Suppose that the random return fm on the market portfolio has expected value E(FM) = 0.07 and variance om = 0.02 and that the return on risk-free asset is rp = 0.02. (a) According to CAPM, if risky asset j has a random return ; with expected value E(F;) = 0.145, what is the numerical value of this asset's beta B;? (b) What is the numerical value of the covariance between this risky asset's random return ; and the random return m on market portfolio? (c) If another risky asset has a random return k with expected value E(k) = 0.01, what is the numerical value of this asset's beta Bk