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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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