Question: Create SML graph that needs to be computer generated either through excel or any other program, reflecting a risk-free rate of 2% and the market
Create SML graph that needs to be computer generated either through excel or any other program, reflecting a risk-free rate of 2% and the market return 7%. Company A with a beta of 1.06495 and Company B with a beta of 0.628906 needed to be labeled on the graph. Required rate of return needs to be on the Y axis and the beta needs to be on the X axis.
Write down the risk premiums of the companies and assess how risky the two companies are relative to the market portfolio.
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