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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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