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b. What is the expected rate of return on each stock if the market return is 35% likely to be 1% and 65% likely to

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b. What is the expected rate of return on each stock if the market return is 35% likely to be 1% and 65% likely to be 20% ? c. If the T-bill rate is 3% and the market return is 35% likely to be 1% and 65% likely to be 20%, draw the SML for this economy

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