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1. Describe how investment funds, pension funds and life insurance companies each act as financial intermediaries 2. If the risk-free rate of return is 6%

1. Describe how investment funds, pension funds and life insurance companies each act as financial intermediaries

2. If the risk-free rate of return is 6% and the return on the market portfolio is 10%, what is the expected return on an asset having a Beta of 1.4, according to the CAPM?

3. Why stock characteristic lines are different for the securities traded in the same market?

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