Question 2 (a) What is the beta of an efficient portfolio (b.) with R.- 20%, if By=5%, Ra = 15%? (3 marks) (b) Describe investment positions at both point A and B in the diagram below: allocation. E(Rj) B bi (3 marks) (c) Explain how an increase in expected inflation and increased risk aversion impact the market security line (SML). marks) [Total: 10 Marks] [UNITED KINGDOM) to search O em e w 19 X 112 pause break port 5951 & k 4 5 6 8 R T Y U O P F G H K V B N M