You want to invest in a portfolio consisting of two stocks: Apple and Orange. There are three possible states by the end

[answerhappygod]

You want to invest in
a portfolio consisting of two stocks: Apple and Orange. There are
three possible states by the end of your investment horizon. The
possible returns of Apple and Orange as well as the probability of
each state occurring are summarized in the following table:
State
Probability
IBM
NIO
A
0.2
16%
-8%
B
0.4
6%
15%
C
0.4
-8%
0%
$54,000 invested in Apple and $36,000
in Orange?
Security
Return
Beta
A
11%
0.7
B
18%
1.5
Does the CAPM hold? If
yes, how can you tell? If not, describe an appropriate arbitrage
strategy.