Assume a perfect world regarding the CAPM assumptions. Two assets have the following

data.

CAL: R $=4+SD**2,35$;$SML$:$R=4+$ Beta $*5,54$

Asset A has an expected rate of return of $7\%,$ with a variation of $2,25$;

Asset $B$ has an expected rate of return of $9\%$ and a variation of $3,24$;

A combination of $70\%A$ en $30\%B$ is efficient, the Beta of this combination is $.65$

Required:

a$.$ If an investor has to choose between A en B$,$ which asset is preferable? Explain! $[2$ pnt$]$

b$.$ Is asset A efficient? Show your calculations $[2$ pnt$]$

c$.$ Determine the non$-$systematic risk of Asset $A$ in $2$ decimals $[2$ pnt$]$

d$.$ Calculate the Beta of asset B $[2$ pnt$]$