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Historical Return Data Month Return on A Return on M Return on F 1 10% 4% 2% 2 3% 2% 2% 3 15% 8% 2%

Historical Return Data Month Return on A Return on M Return on F 1 10% 4% 2% 2 3% 2% 2% 3 15% 8% 2% 4 9% 6% 2% 5 3% 0% 2% Use this data to complete/compute the following: 1. Expected return and risk 2. Form portfolios between A and M 3. Form portfolios between A and F and M and F 4. Dissect total risk into its systematic and unsystematic components 5. Find the equilibrium rates of return in terms of total risk and systematic risk 6. Form arbitrage portfolios using A, M, and F

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