Question: A graph plots beta on the horizontal axis ranging from 1 to 2 with an increment of 1 and return on the vertical axis ranging
A graph plots beta on the horizontal axis ranging from 1 to 2 with an increment of 1 and return on the vertical axis ranging from 5 to 15 percent with an increment of 5 units. It plots a diagonal line labeled SML starting at point (0, 5) and moving passing through (1, 10) and (2, 15).
What is the expected return on the market?
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