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Problem 1 3 - 2 7 SML ( LO 4 ) Suppose you observe the following situation: Assume these securities are correctly priced. Based on
Problem SML LO
Suppose you observe the following situation:
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the
market? Do not round intermediate calculations. Round the final answers to decimal places.
What is the riskfree rate? Do not round intermediate calculations. Round the final answer to decimal
places.
Riskfree rate
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