You are an investor in the CAPM world. There is an investment product with a $$ of $1\mathrm{.}2$ and an advertised $ER$ of $7\mathrm{.}5\%.$ You expect $R_m$ to be $7\%$ and the prevailing $r_f$ is $2\%.$ Do you think this product is a good investment? Why?

If you think the product is a bad investment, synthesize a better investment product by holding the market portfolio and the risk$-$free asset. What should be the portfolio weights in this synthetic product?