Question: 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
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?
| 5.0% | ||
| 6.5% | ||
| 11.5% | ||
| It cannot be determined from this information. |
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