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Question 3 Answer all parts of the question. a) Consider a call option on the market portfolio, what would be the expected return of this

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Question 3 Answer all parts of the question. a) Consider a call option on the market portfolio, what would be the expected return of this call according to CAPM? b) How would this expected return be different from the risk-free rate? How would it be different from the expected return on the market portfolio? c) Answer the previous two questions for a put option on the market portfolio

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