Question: a. Construct a Security Market Line graph and plot the expected return of each investment on thegraph. b. If you were an individual investor with

  • a. Construct a Security Market Line graph and plot the expected return of each investment on thegraph.
  • b. If you were an individual investor with a well-diversified portfolio, which investment(s) in exhibit 12.1would you buy? Why?
  • c. What does the distance between the Security Market Lineand the expected return of investmentindicate?

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