3. You are presented with the following information regarding Portfolios X, Y, and Z:| Portfolio X Portfolio Y Portfolio z EO) 12% 8% 3% g .25 .18 beta 1.6 0.8 .00 0.0 a. Which of Portfolio X and Y would you choose if you could only invest in one of the two? Explain your answer. b. Assume Portfolio Y is simply an 80%/20% combination of the market portfolio and the risk free portfolio. What is the expected alpha of Portfolio X? 3 c. Construct an arbitrage that exploits the result you arrived at in part b