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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 deviation P = 4.5%.

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