(b) [15 marks] The following information is provided for a stock market: 0.12 OjM Asset 1 0 .6 Asset 2 0.5 0.04 Asset 3 0.8 0.32 Risk-free return: ro = 1% Notation: 0; = standard deviation of asset j's rate of return; j = covariance of the rate of return on asset with that on the market portfolio, where j = 1, 2, 3. Assume that the expected rate of return on the market portfolio, um, is 9%, with standard deviation of return Om = 0.4. (i) Assuming that CAPM applies to the information above, show how to apply your analysis in part (a) to calculate each asset's beta-coefficient and to predict its ex- pected rate of return. Hence, explain how the CAPM can be applied to interpret why assets' 'riskiness' differs