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If the expected rate of return on the market portfolio is E (rM) = 12% and its standard deviation is (rM) = 6%; Question 5a):

If the expected rate of return on the market portfolio is E (rM) = 12% and its standard deviation is (rM) = 6%; Question 5a): (5 points), Find the price of risk for a risk free rate of 3%, by using the CML method. Question 5b): (5 points), Find the probability that the market portfolio will have returns less than (3%); the risk free rate. Question 5c): (5 points), Find the probability that the market portfolio will have returns less than (0%).

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