3. Suppose CAPM is the correct model for determining expected returns. Suppose risk-free rate is 1% and market risk premium (E(Rm)-r;)) is 6%. Please calculate alphas for assets X, Y, and Z. Asset X Y z Beta 0.5 1 1.5 Expected return 4% 7% 10% 1 4. Currency rates are always stated in relative terms. For instance, if EUR/USD = 2, that means that you can buy one Euro (EUR) using two US Dollars (USD), or buy two US dollars using 1 Euro. You can also trade fractional units of currencies at the same exchange rate (e.g. buy 0.3 Euros using 0.6 US dollars). Suppose these are the current exchange rates between Euro (EUR), US dollar (USD), and Japanese Yen (JPY): EUR/USD = 2, USD/JPY = 100, and EUR/JPY 190. Is there an arbitrage opportunity? If so, please construct a strategy that achieves arbitrage