5. Imagine there are two risky assets and the risk-free asset of the US bond in the table below. Suppose all the assumptions of the Capital Asset Pricing Model (CAPM) are satisfied. Then answer the...

Extracted text: 5. Imagine there are two risky assets and the risk-free asset of the US bond in the table below. Suppose all the assumptions of the Capital Asset Pricing Model (CAPM) are satisfied. Then answer the following questions. Shares Outstanding Relative Shares Rate of Standard Security In market Price Deviation returns Jazz Inc. 10,000 1/6 $4.50 12% 6% Classical, Inc. 20,000 1/3 $6.75 8% 2% US bonds 30,000 1/2 $2.40 6% [8] Total 60,000 1 [D2]: Explain the assumptions of the CAPM in three lines.