3. Consider the Capital Asset Pricing Model (CAPM). The Treasury bill rate is 4 percent, and the expected return on the market portfolio is 12 percent. Using the capital asset pricing model: a) Draw a security market line. (5 marks) b) What is the risk premium on the market? [5 marks) c) What is the required return on an investment with a beta of 1.5? [5 marks) d) If an investment with a beta of 0.8 offers an expected return of 9.8 percent, does it have a positive abnormal return? [5 marks) e) If the market expects a return of 11.2 percent from stock X, what is its beta? [5 marks)