Answer:
I belive it would be A 
Explanation:
This most matches the defenition 
 
        
             
        
        
        
Answer:
 The expected return on a portfolio is 14.30%
Explanation:
CAPM :  It is used to described the risk of various types of securities which is invested to get a better return. Mainly it is deals in financial assets. 
For computing the expected rate of return of a portfolio , the following formula is used which is shown below:
Under the Capital Asset Pricing Model, The expected rate of return is equals to 
= Risk free rate + Beta × (Market portfolio risk of return - risk free rate)
= 8% + 0.7 × (17% - 8%)
= 8% + 0.7 × 9%
= 8% + 6.3%
= 14.30%
The risk free rate is also known as zero beta portfolio so we use the value in risk free rate also. 
Hence, the expected return on a portfolio is 14.30%
 
        
             
        
        
        
a) ( 0.8509718, 0.8890282)
b) ( 0.7255, 0.7745)
Explanation:
(a)
 Given that , a = 0.05, Z(0.025) =1.96 (from standard normal table)
So Margin of error = Z × sqrt(p × (1-p)/n) = 1.96 × sqrt(0.87 × (1-0.87) / 1200)
=0.01902816
So 95 % confidence interval is
p+/-E  
0.87+/-0.01902816  
( 0.8509718, 0.8890282)
(b) 
Margin of error = 1.96 × sqrt (0.75 × (1-0.75) / 1200) = 0.0245
So 95% confidence interval is
p+/-E
0.75+/-0.0245
( 0.7255, 0.7745)