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5. The expected return for the market is 12 percent, with a standard deviation of 20 percent. The expected risk-free rate is 8 percent. Information
5. The expected return for the market is 12 percent, with a standard deviation of 20 percent. The expected risk-free rate is 8 percent. Information is available for three mutual funds, all assumed to be efficient, as follows: Mutual Funds Affiliated Omega Ivy SD(%) 15 17 19 (a) (b) Based on the CML, calculate the market price of risk. Calculate the expected return on each of these portfolios
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