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Let rm be the expected market rate of return, let SM be the market standard deviation, let rf be the risk-free rate. If we assume

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Let rm be the expected market rate of return, let SM be the market standard deviation, let rf be the risk-free rate. If we assume that the market is efficient. What is the equation of the capital market line? Give your answer in the form r=f(s), where r is the expected rate of return of an asset and s is the standard deviation of that asset. r= rf + (s*rM - s*rf)/SM r= rf + (rm -rf)/s +SM r= rf + (rm -rf SM/ r= rf - (TM + rf )s/SM

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