Suppose the risk-free return (R_f) and the expected return on market portfolio (R_m) are 3% and 13%, respectively. Furthermore, assume, the Capital Asset Pricing Model (CAPM) is the best way to price securities. In that framework, consider the following three securities:

Security	Beta	Expected return
A	.8	11%
B	1.1	12%
C	1.4	17%

Is there an arbitrage opportunity here? If you believe there is no arbitrage opportunity, explain why? If you believe there is an opportunity for arbitrage, explain how one can utilize this opportunity and show your work in detail, assuming that the law has set a $1,000 limit to short sale.