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Given the following market information: R F = 4% E[R M ] = 8% M = 2% Use the Capital Market Line (CML) equation to
- Given the following market information:
RF= 4%
E[RM] = 8%
M= 2%
Use the Capital Market Line (CML) equation to find the expected return, E[RP], on a well-diversified portfolio whose standard deviationP= 4.5%.
Answer Choices
A.13%
B.22%
C.36%
D.12%
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
