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Security market line (Security market line) Your father just leamed from his fnancial advisoe that his retrement portfolio has a beta of 1.79 . He
Security market line
(Security market line) Your father just leamed from his fnancial advisoe that his retrement portfolio has a beta of 1.79 . He has tumed to you to explain fo him what this means. Specifically. describe what you would expect to happen to the value of his fetirement fund if the following wore to cocur: a. The value of the market portfolio rises by 10 percent. b. The value of the manket portiolio drops by 10 percant. c. Is your father's retrement portfolio more or less risky than the maket portfolio? Explain. a. If the value of the market portolio rises by 10%, then the value of your fathers retrement fund should decimal places) by S. (Select from the drop-down menu and round the answer to two Step by Step Solution
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