Question 3 (5 points -2.5+2.5) Assume that the CAPM holds and refer to the graphs below. Circle the best answer for each question and justify in 1-2 sentences (an unjustified answer will not receive any credit). When answering these questions please consider both graphs as proportional. Portfolio 4! Portfolio 4 Marketi Market R -11% | Portfolio R=11% Portfolio ------- Portfolio B R=%0A Portfolio Portfolio D o=20% 40% (A) Portfolio A is comprised of a positive weight in the risk free asset and a positive weight in the market portfolio: i) true ii) false iii) 10% in the risk free asset + 90% in risky asset iv) can't tell for information given Justification: (B) The beta of portfolio B is = i) -1 ii) O iii) +1 iv) can't tell for information given Justification