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Figure 7.12 Security market line Expected return E(R) 17.5 15.0 Asset 1 12.5 10.0 M Security market Asset 2 line 1.0 1.5 0.5 Risk

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Figure 7.12 Security market line Expected return E(R) 17.5 15.0 Asset 1 12.5 10.0 M Security market Asset 2 line 1.0 1.5 0.5 Risk (B)

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