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Security market line (SML) Assume that the risk-free rate, RF, is currently 4% and that the market return, I'm is currently 11%. a. Calculate the
Security market line (SML) Assume that the risk-free rate, RF, is currently 4% and that the market return, I'm is currently 11%. a. Calculate the market risk premium. b. Given the previous data, calculate the required return on asset A having a beta of 0.5 and asset B having a beta of 1.6. a. The market risk premium is %. (Round to one decimal place.) b. If the beta of asset A is 0.4, the required return for asset A is %. (Round to one decimal place.) If the beta of asset B is 1.6, the required return for asset B is %. (Round to one decimal place.)
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