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Please do all parts! thank you! 7. In SimpleLand, there are only two risky stocks A and B, whose details are as follows: Further, it

Please do all parts! thank you! image text in transcribed
7. In SimpleLand, there are only two risky stocks A and B, whose details are as follows: Further, it is given that the correlation between the two stocks is - 0.20 . Find the risk-free rate in this economy, if the CAPM holds in SimpleLand. 8. If the CAPM is valid, is the following situation possible

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