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Hello, I have this exercise from my Investment class with the answers but I need to know the procedure of how to reach those results.

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Hello, I have this exercise from my Investment class with the answers but I need to know the procedure of how to reach those results. Could you help me? Thank you.

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The market premium under proxy is The market premium under the true is 0.06 0.07 11.2% The return should be (proxy)k = Assuming true SML (true) = Difference Underperforming 13.4% 2.20%

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