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Suppose that the optimal risky portfolio has an expected return of 20% and a standard deviation of 40%. Expected return and standard deviation of a

Suppose that the optimal risky portfolio has an expected return of 20% and a standard deviation of 40%. Expected return and standard deviation of a portfolio that lies on the Capital Market Line are 15% and 25%, respectively.

a) Find the slope of Capital Market Line.

b) What is the risk-free rate in this economy?

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