# Question

Return to Problem 1. If (R-bar)m - RF) = 4, find the values for the following variables that would make the expected returns from Problem 1 consistent with equilibrium determined by the simple (Sharpe–Lintner–Mossin) CAPM:

A.βλ1 and βλ2

B. βp for each of the three portfolios

C. RF

A.βλ1 and βλ2

B. βp for each of the three portfolios

C. RF

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