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URGENT !!! PLEASE ANSWER THE FULL QUESTION AND PROVIDE VALID SOLUTION, I WILL DO UPVOTE The market portfolio in the Karachi Stock Exchange has an

URGENT !!! PLEASE ANSWER THE FULL QUESTION AND PROVIDE VALID SOLUTION, I WILL DO UPVOTE image text in transcribed

The market portfolio in the Karachi Stock Exchange has an expected return of A\% with B\% standard deviation. The rate on Treasury Bills is currently C\%. You created a welldiversified portfolio that lies on the Capital Market Line. Given that your new portfolio has D\% standard deviation, a) Calculate the slope of the CML. B) Calculate the expected return of this portfolio. You hired some Econ 261 students to find you the tangency portfolio. They report that the tangency portfolio has an expected return and standard deviation of A\% and B\% respectively. They also report that the risk-free rate is currently C\%, and the expected return on the market portfolio is D\%. Assuming CAPM holds, what would the expected rate of return of Security X be, given Security X has a correlation with the market portfolio of E and standard deviation of F\%? First, a) calculate the slope of Capital Market Line then b) calculate the standard deviation of the market portfolio , then finally c) use these to calculate the expected rate of return of Security X. Acme Corporation is an all-equity firm. Its common stock has a beta of A. Given the risk-free rate is B\%, and the market risk premium is C\%, what is Acme's cost of unlevered equity

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