Question 4 (30 points) The information below is annual or annualized where appropriate. There are no transaction costs or taxes. The capital asset pricing model (CAPM) is the valid asset pricing model. The expected return of the market portfolio is 8% with a variance of 0.0081, while the risk-free rate is 2% over the next year We also have the following information about three assets: Asset A, asset B, and asset C. Asset A is currently selling for $100, and we expect the asset to make a cash distribution of $3 after one year, at which point we expect the asset to sell for $118. We estimate that the covariance between the returns of asset A and the market portfolio is 0.02025. We expect the holding period return of asset B to be 11% over the next year. We estimate that the covariance between the returns of asset B and the market portfolio is 0.01215. We estimate that asset C carries an intrinsic value of $550 today, and expect the asset to sell for $627 after one year. We also estimate that the CAPM-implied beta of asset C is 1.5. We are interested in setting up a $40,000 portfolio of asset A, asset B, asset C, the risk-free asset, and the market portfolio for the next year. We know that we want to take a long position in asset B of $4,000, a short position in the risk-free asset of $8,000, and a long position in the market portfolio of $12,000. Calculate the dollar amount we should invest in asset A and the dollar amount we should invest in asset C such that the portfolio carries a target abnormal profit of $2,680