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Consider the following figure which shows the betas and corresponding expected returns (i.e., security market line (SML)). According to this figure what is the expected
Consider the following figure which shows the betas and corresponding expected returns (i.e., security market line (SML)). According to this figure what is the expected return on the market? Expected return SML 15% 10% 5% 0% 0 1 N Beta A. 10% B. 15% OC. 0% D. 5% You invest $10,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected return of 15% and a standard deviation of 21%, and a Treasury bill (risk-free asset) with a rate of return of 5%. How much money should be invested in the risky asset to form a complete portfolio with an expected return of 9%? O A. $6,000 OB. $4,000 OC. $7,000 D. $3,000 OE. $5,000
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