Question: QUESTION 16 In the CAPM world, two securities, A and B, are priced efficiently, i.e., they fall on the SML. The expected return of A

QUESTION 16 In the CAPM world, two securities, A and B, are priced efficiently, i.e., they fall on the SML. The expected return of A is 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 A. 15% and 5% B. 18% and 6% C. 15% and 6% D.16% and 6% E. 14% and 4%

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