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You are looking to invest in two assets, asset 1 and asset 2, and CAPM is true. We know that E[r] = 5% E[r2]

You are looking to invest in two assets, asset 1 and asset 2, and CAPM is true. We know that E[r] = 5% E[r2] = 6.5% 1 B = 0.6 = 0.9 Sharpe ratio market portfolio = 0.455 What would be the variance for the market portfolio?

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