Question: QUESTION 22 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 22 In the CAPM world, two securities, A and B,

QUESTION 22 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 _. O A. 15% and 5% OB. 18% and 6% O C. 15% and 6% O D. 16% and 6% E. 14% and 4%

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