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Security market line ( SML ) Assume that the risk - free rate, R F , is currently 1 0 % and that the market

Security market line (SML) Assume that the risk-free rate, RF, is currently 10% and that the market return, rm, is currently 17%.
a. Calculate the market risk premium.
b. Given the previous data, calculate the required return on asset A having a beta of 0.7 and asset B having a beta of 1.7.
a. The market risk premium is
%.(Round to one decimal place.)
b. If the beta of asset A is 0.7, the required return for asset A is
%.(Round to one decimal place.)
If the beta of asset B is 1.7, the required return for asset B is
%.(Round to one decimal place.)
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