2. If the expected return on the market is 12% while the risk-free rate is 5%.

a) Does the following description of securities constitute an equilibrium situation?

Security	Actual Return	i
1	15.5%	1.5
2	6.4%	0.2
3	1.5%	-0.5
4	9.5%	0.8
5	14.8%	1.2

b) For those securities that are not in equilibrium are the securities expected to rise in price or fall in price?