Assume the CAPM model. Consider the following equation for the (random) rate of return of asset i, for i = 1, 2, 3,

r_i = r_f + _i ( r_M - r_f) + _i,

where M refers to the market portfolio, and r_f is the risk free rate of interest. It is assumed that _i and r_M are uncorrelated. (Recall that var( _i) is termed the nonsystematic risk.) Refer to the following incomplete table:

Asset i	E(ri)	i	i	Var(i)
1	0.144		0.6	0.1
2	0.27		1.5	0.05
3		0.2841	0.8	0.06

(Keep 4 decimal places to your answers.)

Determine r_f . ______________

Determine E(r_M). _____________

Determine E(r₃). ______________

Determine _M². _____________

Determine ₁. ______________

Determine ₂. _____________