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Asset E has a beta of 1.2 and idiosyncratic variance of 0.02. Assuming the Capital Asset Pricing Model holds, explain whether asset E will lie
Asset E has a beta of 1.2 and idiosyncratic variance of 0.02. Assuming the Capital Asset Pricing Model holds, explain whether asset E will lie on, above or below (a) the Securities Market Line, and (b) the Capital Market Line
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