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The market portfolio ( M ) provides a 1 5 % annual return with a 2 0 % standard deviation. The risk - free rate

The market portfolio (M) provides a 15% annual return with a 20% standard deviation. The risk-free rate of return (rf) is 5% per annum. Security Q and P provide 17% and 11% return per annum and their betas are 1.2 and 0.8 respectively. Based on this information Mr Ali drew the following graph of Security Market Line (SML) to identify any mispricing of security Q and P in the market. Unfortunately, Jenny forgot to label her graph. Help her label the following graph.
i) Identify the labels for Axis x and Axis Y.
ii) Among the points, A, B, C, D, E and F on the graph - identify the locations of riskfree return and market portfolio (M).
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