Asset 1 has B1 = 0.5, whereas Asset 2 has B2 = 2. (a) The market portfolio returns an average of 8%, and the return on safe bonds is 4%. What does CAPM imply must be the expected return of the two assets? (b) Can it be consistent with CAPM that o dom? (Hint: Use the fact that all correlations are less than one, so