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The following table shows risk and return measures for two portfolios. Portfolio Average Annual Rate of Return Standard Deviation Beta R 11% 10% 0.5 S&P
The following table shows risk and return measures for two portfolios. Portfolio Average Annual Rate of Return Standard Deviation Beta R 11% 10% 0.5 S&P 500 14% 12% 1.0 When plotting portfolio R on the preceding table relative to the SML, portfolio R lies: a. Insufficient data given. b. Below the SML, but on the CML. C. Below the SML. d. On the SML. e. Above the SML
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