Consider the Following Data for Funds A,B,C,and D $\bar { R } _ { A } = 20 \%$

Consider the following data for funds A,B,C,and D: $\bar { R } _ { A } = 20 \%$ ; $\bar { R } _ { B } = 15 \%$ ; $\bar { R } _ { C } = 10 \%$ ; $\bar { R } _ { D } = 18 \%$ ; $\beta _ { \mathrm { A } } = 1.5$ ; $\beta _ { B } = 1.0$ ; $\beta _ { C } = 0.8$ ; $\beta _ { D } = 1.2$ .
Assume that the zero-beta form of the CAPM is a reasonable description of reality and that funds A and B are accurately priced.Which funds' returns are not in equilibrium and by how much? What is the arbitrage that would restore equilibrium?