(cl. A firm has the following investment alternatives and wishes to use CAPITAL ASSET PRICING MODEL (CAPM) to determine their viability. The following pertinent data are provided
PROJECT(A,B,C,D)
BETA( A 2.0, B 1.5,C 1.0, D -0.9)
WEIGHT Kshs( A 30 million, B 20 million, C 30 million ,D 20 million

You are required to determine the following:
1.EXPECTED RETURN OF EACH PROJECT. (8MKS)

2.EXPECTED RETURN OF THE 4-ASSET PORTFOLIO. (8MKS)
3.BETA OF THE 4-ASSET PORTFOLIO. (8MKS)
4 The RELATIONSHIP BETWEEN BETA OF AN ASSET AND ITS EXPECTED RETURN. (1Mark)