Question 2 (a) What is the beta of an efficient portfolio (b) with R=20%, if Re-5%, Ro-15%? (3 marks) (b) Describe investment positions at both point A and B in the diagram below: allocation. ER (3 marks) () Explain how an increase in expected inflation and increased risk aversion impact the market security line (SML). marks) [Total: 10 Marks) H (UNITED KINGDOM) to search ' oie -e ewo pause break prto