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1.With the risk-free rate of 2% and the risk premium 2%, construct a SML, labeling both axes.Using the SML you constructed, what does an actual

1.With the risk-free rate of 2% and the risk premium 2%, construct a SML, labeling both axes.Using the SML you constructed, what does an actual return:of 8% ona 3-beta industrial stock suggest?

2. Provide the CAPM required return on a cloud computing technology s tock in a word with a 15% risk-free rate, a 15% risk premium, and a Beta of 15.

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