This is not an essay assignment, this is a problem set ( with 2 questions). The course is 'investments' course.

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INVESTMENT COURSE
Contents
Solution 1.    3
Solution 2.    5
Work Cited    7
Solution 1.
Er = Rf + (Rm-Rf) *Beta                                            
Er = Return from the security or portfolio                                                                                    
Rf = Risk free rate of return                                                                                            
Rm = Rate of Return from the market                                                                                        
Portfolio A    12 = Rf + (Rm -Rf) *1.2                                                                                
Portfolio B    6 = Rf + (Rm - Rf) *0.0                                                                                    
Subtraction Equation (2) from Equation (1), we get:                                                                            
6 = 1.2*(Rm - Rf)                                                    
Therefore, Rm - Rf = 6/1.2 = 5.00                                                                                        
Now, putting the value of Rm – Rf = 5 in Equation (1), we get:                                            
12 = Rf + 5 * 1.2    Rf = 6.0                                            
                                                    
We have Portfolio A with Er = 12% and Beta = 1.2                                                        
We have Portfolio B with Er = 6% and Beta = 0                                                                            
We have Portfolio C with Er = 8% and Beta = 0.6                                                                            
If we have a mixture of Portfolio A and C with weights for Portfolio A is Wa and for Portfolio C is 1-Wa for getting Beta as 1                                                                                        
WA*1.2 + (1 - WA) * 0.6 = 1                                                    
(1.2 x WA) + (0.6...