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6. (The capital market line)The capital market line is given by: Required rate= .06+0.4o a. What is the risk-free rate of interest? b. What is
6. (The capital market line)The capital market line is given by:
Required rate= .06+0.4o
a. What is the risk-free rate of interest?
b. What is the value of the market price of total risk?
c. What is the required rate of return from a security
with a standard deviation of 12%?
d. What is the standard deviation of a security with a required rate of return of 14%?
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