5. In a small economy, the market portfolio comprises shares in only three companies: D, E and F. Details are set out in the table below. Company name Shares issued Price per share Expected Return D 1,000,000 $2.00 8% E 500,000 $8.00 10% F 1,600,000 $2.50 21% There is also a risk-free asset that offers a return of 4%. a. Calculate the expected return on the market portfolio. b. Assume that the capital asset pricing model (CAPM) applies in this market; calculate the beta of company E