Please show all equations and work as needed.

Assume that A and B are two well-diversified portfolios and that the risk-free rate is 8%. PortfolioExpected Returm 1.00 18% 12% 0.50 In this situation, would you conclude that there exists an arbitrage opportunity involving the described securities? If your answer is affirmative, show the strategy that you would use to exploit such arbitrage. If your answer is negative, show why that is the case