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Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an excepted return of 13.1%. Asset C has

Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an excepted return of 13.1%. Asset C has a beta of .50 and an excepted return of 7.50%

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A) What is the risk-free rate of return?

B) What is the market risk premium?

c) Draw the SML and write the equation for CAPM

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