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The market price of risk is expected to be 7% and the risk-free is estimated to be 1.5% over the coming period. You have estimated

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The market price of risk is expected to be 7% and the risk-free is estimated to be 1.5% over the coming period. You have estimated the beta of your security equal to .8. Describe how this would fit on the SML plot, identify the relevant co-ordinates of the market and your security. If over the period you believe due to company activities the actual return will be 6.0% how would that show on the plot. Explain what actions should take place in an efficient market context

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