Question: please include all work 4. The risk-free rate is 1% and the expected return on the market is 6%. Graph the security market line using

please include all work

4. The risk-free rate is 1% and the expected return on the market is 6%. Graph the security market line using this information. Also calculate the expected return for a stock with a beta of 1.4 and indicate where it lies on the SML. (10 points) E(r) in % 10 - 1.4 1.8

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