Assume the following assets are correctly priced according to the Security Market Line. (1) = 5% ; 1 = 0.3(2) = 15% ; 2 = 1.31.

Derive the Security Market Line.

2. Calculate the expected return of the market.

3. What is the expected return on an asset with a beta of 0.9?

Please show step by step and easiest way to solve