Question: Consider the Capital Market Line. Given that the expected return on the market portfolio is 15%, the risk-free rate is 9.5%, and the standard deviation

Consider the Capital Market Line. Given that the expected return on

Consider the Capital Market Line. Given that the expected return on the market portfolio is 15%, the risk-free rate is 9.5%, and the standard deviation of the market portfolio is 32%. Required: a. Calculate the market price of risk for this portfolio? (3 marks) b. Define risk, and differentiate between systematic and unsystematic risk. (2 marks)

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