Assume we have two stocks, A and B$.$ Stock A has expected return $12\%$ and stock B has

expected return $15\%.$ The beta for stock A is $0\mathrm{.}8$ and the beta for B is $1\mathrm{.}2.$ The expected

returns of both stocks lie on the SML line.

$($a$)$ What is the expected return of the market?

$($b$)$ What is the risk$-$free rate?

$($c$)$ What is the beta of a portfolio made of these two assets with equal weights?