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please answer 4 and 5 with explanations. thank you! 4. Suppose the risk-free rate is 8% and the market risk premium is 8%. Draw the

please answer 4 and 5 with explanations. thank you! image text in transcribed
4. Suppose the risk-free rate is 8% and the market risk premium is 8%. Draw the security market line, and show where (a) the risk-free asset, and (b) the market portfolio fit in the graph. Mark their required returns and betas clearly. 5. In their 1976 hit song "Money, Money, Money," the Swedish band ABBA sing: I'll have to go To Las Vegas or Monaco, And win a fortune in a game My life will never be the same. Use the concepts you learn from asset pricing to analyze ABBA's investment strategy (playing casino games). Specifically, discuss systematic risk vs. idiosyncratic risk, and alpha, of casino games

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