54.800 QUESTION SG Suppose you live in the CAPM model world. Goldman Sachsis selling two derivative securities to your company. Both we pay 100 million dollars over a 10 year period. Asume tme vale of money ero Security A will pay 10 milion each year for sure. Security will will randomly pay out cash that is unrelated to anything be there is no correlation with the market return O A-100 metion because A is risk free: B4100 million because Bisnisky A-B and both are smaller than 100 milion OAB Bis not risk free but its risk does not matter. So A-Band both are priced at 10 min QUESTION 57