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  1. business
  2. accounting
  3. b) explain the main differences between the capita

b) Explain the main differences between the capital market line and the security market line,...

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Accounting

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b) Explain the main differences between the capital market line and the security market line, and thus explain why do you have individual investments in one but not the other?

a) From our work on the capital market line wok out the expected returns for the 2 portfolios below. (2.5 marks each) E(Rp) = Rf + op [E(Rm-Rf)/cm] 9.5% The expected return on the market is The risk-free rate is The standard deviation to the market is 2.25% 4% First Case Second Case what is the expected return for a portfolio that seeks to have a standard deviation of 3% 7% First Case Second Case

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