l. The following information is available on the percentage rates of return on various assets under the three possible states of the world, each of

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l. The following information is available on the percentage rates of return on various assets under the three possible states of the world, each of which has a probability of occurring of one third: State 1 2 3Share A —6% —18% 60%Share B 32% —22% 35%Market Portfolio 50% — 10% 20%Risk—free Asset 10% 10% 10% i) What is the numerical equation for the Capital Market Line (CML) for the market?ii) Do shares A and B lie on the CML, and what, if anything, do you conclude fiomthis? iii) What are the beta values for share A and B? iv) Are the expected returns for shares A and B consistent with the Security Market Line and, if not, what equilibrating changes would you expect to occur?