In an economy. Jane found three assets to invest in, with returns given in a 1-factor model with

where and are uncorrelated with the factor and each other. Jane is now tasked with analyzing this economy by first finding the following portfolios that have a factor

Find the pure-factor portfolio by composing:

(i) Only assets 1 and 2,

(ii) Only assets 2 and 3,

(iii) Only assets 1 and 3

= i = 0,05 + 2,5F1 + i, r2 = 0,02 +0,5F1 + 2, 3 = 0,035 + 1,5F1 +3, ody = 0,03 o = 0,02 on = 0,04 E2 E3 EF = 0 = B=1