Question: both assets B and C plot on the SML. Asset B has a beta of 1.3 and an expected return of 13.1%. Asset C has

both assets B and C plot on the SML. Asset B has a beta of 1.3 and an expected return of 13.1%. Asset C has a beta of .50 and expected return of 7.50%. a. what is the risk-free rate of retrun? b. what is the market risk premium? c. draw the SML and write the equation for CAPM?

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