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Suppose that the risk-free rate of interest is 0.03 and the expected rate of return on the market portfolio is 0.14. The standard deviation of

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Suppose that the risk-free rate of interest is 0.03 and the expected rate of return on the market portfolio is 0.14. The standard deviation of the market portfolio is 0.12. (a) According to the CAPM, what is the efficient way to invest with an expected rate of return of 0.11? (b) What is the risk (standard deviation) of the portfolio in part (a)

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