Consider a financial market composed of only two risky assets that are imperfectly correlated. Ricky asset 1 has beta of 1.7 and expected return of 10%. Risky asset 2 has beta of 0.7 and expected return of 7%. Find expected return on the market portfolio.

Suppose that the correlation coefficient between the rates of return on LM Fund and the market portfolio is 0.5. The standard deviations of the rates of return are 0.20 for LM fund and 0.15 for the market portfolio. Find beta of LM.