Question: Question 3 (15 marks) Note: Part a and b are separate so you cannot use information from one in the other.) a. You have discovered

Question 3 (15 marks) Note: Part a and b are separate

Question 3 (15 marks) Note: Part a and b are separate so you cannot use information from one in the other.) a. You have discovered three well-diversified portfolios with the following characteristics. Investment Expected Return Beta Unique Risk A 5% 0.0 None B 12% 0.8 None 25% 1.5 None Could these three portfolios lie on the same security market line

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