Question: Using data from number 1: The yield curve is currently flat; that is, long-term Treasury bonds also have a 3.0% yield. Consequently, Merrill Finch assumes

Using data from number 1: The yield curve is currently flat;

Using data from number 1: The yield curve is currently flat; that is, long-term Treasury bonds also have a 3.0% yield. Consequently, Merrill Finch assumes that the risk-free rate is 3.0%. (2) Write out the SML equation, use it to calculate the required rate of return on each alternative

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