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Question 7 3 pt Assume that the % expected return for security A and the market M for a good, normal and bad economy (probabilities.3.4.3)

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Question 7 3 pt Assume that the % expected return for security A and the market M for a good, normal and bad economy (probabilities.3.4.3) are 20, 16, and 10 for A and 8, 4, and 12 for M. Also assume that you invest 40% in A and 60% in M. Compute the standard deviation for a portfolio of A and M. 1.69 3.90 3.32 3.55 Question 8 3 pts If the expected return on a security is greater than its SML required return is this security correctly valued undervalued overvalued more information is needed to answer this

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