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Asset W is correctly priced and has an expected return of 11.6% and a beta of 1.30 . If the risk-free rate is 3.8% 1.

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Asset W is correctly priced and has an expected return of 11.6% and a beta of 1.30 . If the risk-free rate is 3.8% 1. a. What is the slope of the SML? What is the significance of the slope of the line for any portfolio consisting of the risk-free asset and Asset W? 2. Suppose you observe the following situation: a. Assume these securities are correctly priced. Based on the CAPM, what is the risk free rate? b. What is the expected return on the market? Asset W is correctly priced and has an expected return of 11.6% and a beta of 1.30 . If the risk-free rate is 3.8% 1. a. What is the slope of the SML? What is the significance of the slope of the line for any portfolio consisting of the risk-free asset and Asset W? 2. Suppose you observe the following situation: a. Assume these securities are correctly priced. Based on the CAPM, what is the risk free rate? b. What is the expected return on the market

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