answer 12

In the CAPM world, two securities, A and B, are priced efficiently, i.e., they fall on the SML. The expected return of A is 21%, and its beta is 1.8. The expected return of B is 13%, and its beta is 1. Use this information to answer questions 22 and 23. 22. The expected return of the market portfolio is _and the risk free rate is A. 13% and 3% B. 14% and 4% C. 14% and 6% D. 13% and 5% E. 15% and 6% 23. What is the slope of the SML? A. 0.1 B. 0.15 C. 0.08 D. 0.12 E. 0.2 rtfolios (Yalue and Growth) ou