The current rate of return on the market index is 28%, the rate of return on the 52-week T-bills is 6.5% (risk free rate) a) Assuming that the following securities exist on this market, mark (sketch as accurately as possible) their position on a chart (market risk /systematic/ vs. rate of return) in relation to the Security Market Line (4 points):

Security	Expected rate of return
A	23%	0,8
B	31%	1,1
C	12%	0,2

b) In each case explain what means the position of instrument on a chart (2 points). c) Use instruments A and B to construct an example of portfolio that it is well-priced according to the CAPM model - provide the shares of instruments A and B in such portfolio as well as the rate of return and (4 points).