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2. (A small world) Consider a world in which there are only two risky assets. A and B, and a risk-free asset F. The two

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2. (A small world) Consider a world in which there are only two risky assets. A and B, and a risk-free asset F. The two risky assets are in equal supply in the market: that is, M- (A + B). The following information is known: rF = .10, 1-04, &B .01, = .02, and r,-18. (a) Find a general expression (without substituting values) for , , and (b) According to the CAPM, what are the numerical values of TA and Fa

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