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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 riskfree rate, is currently and that the market return, is currently
a Calculate the market risk premium.
b Given the previous data, calculate the required return on asset A having a beta of and asset B having a beta of
a The market risk premium is
Round to one decimal place.
b If the beta of asset is the required return for asset is
Round to one decimal place.
If the beta of asset is the required return for asset is
Round to one decimal place.
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