HELP PLEASE

2. Both portfolios A and B are well diversified and fairly priced, and their information is shown below. Suppose another portfolio C is well diversified with a beta of 1.5 and expected return of 15%. Portfolio E() Beta A 5% 0 B 13% 1.0 A) Based on the CAPM model, is portfolio Coverpriced or underpriced? B) Design a zero-cost and zero-risk arbitrage strategy that exploits the mispricing of portfolio C. Assume you would buy or short sell S2000 of portfolio C. C) Based on the arbitrage strategy you answered in the last question, compute the arbitrage profit