Question: a) Plot the Security Market Line (SML) it show? Identify undervalued/overvalued investments from the graph (2 marks) Question 3 (4 marks) From the information generated
a) Plot the Security Market Line (SML) it show? Identify undervalued/overvalued investments from the graph (2 marks) Question 3 (4 marks) From the information generated in the previous two questions; a) Identify two investment atternatives that can be combined in a pontiolio. Assume a 50 50 investment allocation in each investment alternative c) Compute the portfolio's beta. Is the portfolio aggressive or defensive? ( 2 marks)
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