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please help me answer questions 1 and 2 The retum on the market portfolio is 12% and the risk free rate is 4%. If a

please help me answer questions 1 and 2
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The retum on the market portfolio is 12% and the risk free rate is 4%. If a security has a level of systematic risk equal to 0.75, I its equilibrium rate of return is 10% II Its eqilibrium rate of return is less than 12% because its risk is lower than M III Its equilibrium rate of retum is greater than 4% because it is risky a. I only b.I, II, and III C. I and II d. III only e. II and III QUESTION 2 A risk-averse investor a. Avolds risk b. Seeks investments with higher risk c. Ignores risk d. Will accept risk if adequately compensated e. Invests in securities with zero risk

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