Let the mean return from the market portfolio be 8% per year and the risk-free rate be 2.4% per year. (please show all steps)

1. If Tony sets beta equal to 1.4 and expects the return equal to 10%, what will be the interest rate of the borrowed money per year?
2. What would be Tonys yearly actual return from the combination under part (a), if the actual return from the market portfolio were 2.5%?
3. Explain whether Tony would beat the market under part (b).
4. Explain whether Tony would undertake the combination under part (b).