Please solve this question and give details of each step of the solution

5. Assume the CAPM holds and the following two stocks are in equilibrium. Stock Return Beta J 12% 1.2 z 18% 2.0 a) derive the Securities Market Line (SML) equation b) Assume portfolio K, a mutual fund, with beta of 1.6 has rate of return of 13%. If the CAPM is the benchmark model, evaluate portfolio K's performance, c) if portfolio K is traded like any stock in the market, design any arbitrage opportunity and show what rate of return can be earned with zero beta and zero investment