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You are given the following information on two stocks: R = 8.5% B1 = 0.6 R2 = 14.5% B2 = 1.4 = If the stocks

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You are given the following information on two stocks: R = 8.5% B1 = 0.6 R2 = 14.5% B2 = 1.4 = If the stocks are correctly priced on the security market line. Derive and draw the security market line. Clearly label the axes, the y-intercept and the market portfolio. (7 Points)

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