Question: You have been provided the following data on the securities of three firms and the market: Assume the CAPM and SML are true and fill

You have been provided the following data on the securities of three firms and the market:

Assume the CAPM and SML are true and fill in the missing values in the table. Would you invest in the stock of any of the three firms? If so, which one(s) andwhy?

Security 1.0 0.5 Stock A Stock B Stock C Market portfolio Treasury-bills 0.15 0.10 0.10 0.05 0.18 0.02 0.04 0.5

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