Question: Explain the difference between the security market line and the capital market line in terms of risk and return. Will the capital market line call

Explain the difference between the security market line and the capital market line in terms of risk and return. Will the capital market line call for a higher expected return than the security market line?

Cov(RA, R.)-30, .f-40, RM = 10%, RF-4%, ' 25, and RA-9.5%. "F" is a riskless asset a. Explain the difference between the security market line and the capital market line in terms of risk and return. Will the capital market line call for a higher expected return than the security market line? (5 points)

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