An economy contains these three assets:
Asset A has standard deviation of returns (per annum) of 25% and market capitalisation $600m
Asset B has standard deviation of 20%, market capitalisation $300m
Asset C has standard deviation of 10%, maket capitalisation $100m
The correlation coefficient for the returns on each pair of distinct securities is 0.25.
The risk-free rate of return is 3.3% per annum and the expected return on the market is 8.38% per annum.
The assumptions underlying CAPM are valid and all investors will hold their portfolios for the next year.
How can I calculate the expected annual returns for each asset?