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Draw the SML for the market in questions 1 and 2 on the grid below. Only SMLs drawn on the handed-out grid will be accepted.
Draw the SML for the market in questions 1 and 2 on the grid below. Only SMLs drawn on the handed-out grid will be accepted. Show the positions of the risk-free asset, the market portfolio, and Claimed Denied Insurance Company stock on the SML. Label the point for the risk-free asset as F, the point for Claimed Denied as C, and the point for the market as a whole with the label M
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