Question
1.1. In the context of the CAPM, explain the difference between the SML and the CML (3). 1.2. The market portfolio has an expected return
1.1. In the context of the CAPM, explain the difference between the SML and the CML (3).
1.2. The market portfolio has an expected return of 0.12 and a standard deviation of 0.40, and the risk-free rate is 0.04. Calculate the slope of the security market (2).
1.3. Explain what the slope of the SML represents (3).
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Entrepreneurial Finance Finance For Small Business
Authors: Philip J. Adelman
1st Edition
0138129835, 9780138129835
