Question: Given the following data: Expected return Beta Standard deviation Security X 15.5% ? 2% Security Y 9.2% ? 9% Market portfolio 12.0% ? 12% Risk-free

Given the following data: Expected return Beta Standard deviation Security X 15.5% ? 2% Security Y 9.2% ? 9% Market portfolio 12.0% ? 12% Risk-free asset 5.0% ? 0 a) What are the betas of the market portfolio and the risk-free asset? b) Calculate the betas of the two securities X and Y

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