Question: Chac ADVANCED ANALYSIS Suppose that the equation for the SML is Y= 0,04 + 0.05X, where Y is the average expected rate of return, 0.04

 Chac ADVANCED ANALYSIS Suppose that the equation for the SML is

Chac ADVANCED ANALYSIS Suppose that the equation for the SML is Y= 0,04 + 0.05X, where Y is the average expected rate of return, 0.04 is the vertical intercept, 0.05 is the slope, and X is the risk level as measured by beta. Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 1 decimal place. In part c, round your answer to 2 decimal places. a. What is the risk-free interest rate for this SML? percent ices b. What is the average expected rate of return at a beta of 1.5? percent c. What is the value of beta at an average expected rate of return of 9 percent

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