Question: QUESTION 10 In the CAPM world, two securities, A and B, are priced efficiently, i.e., they fall on the SML. The expected return of Ais

QUESTION 10 In the CAPM world, two securities, A and B, are priced efficiently, i.e., they fall on the SML. The expected return of Ais 20%, and its beta is 1.6. The expected return of B is 11%, and its beta is 0.7. The expected return of the market portfolio is and the risk free rate is OA. 15% and 6% B. 14% and 4% C. 18% and 6% OD. 16% and 6% E 15% and 5%

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