Question: 7. Both assets A and B plot on the SML. Asset A has an expected return of 15% and a beta of 1.7. Asset B

7. Both assets A and B plot on the SML. Asset A has an expected return of 15% and a beta of 1.7. Asset B has an expected return of 12% and a beta of 1.1 . What is the expected return on the market portfolio? A) 11% B)% C) It cannot be determined from this information D) % 8. Both assets A and B plot on the SML. Asset A has an expected return of 15% and a beta of 1.7. Asset B has an expected return of 12% and a beta of 1.1 . What is the risk-free rate of return? A) 11.5% B) 5.0% C) It cannot be determined from this information D) 6.5%

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