Please try to answer both in 30 minute just need final answer In the mean-standard deviation graph, the line that connects the risk-free rate and the marketportfolio is calledO a. the Security Market LineOb. the Indifference CurveOc. the investor's utility lineO d. the Capital Market LineO e. none of the above Your personal opinion is that security X has an expected rate of return of 0.16. Its beta isequal to 1.2. The risk-free rate is 0.03 and the market expected rate of return is 0.11.According to the Capital Asset Pricing Model,this security isO a. underpriced.O b. overpriced.Oc. aity priced.O d. cannot be determined from dala provided.O e. none of the above.

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In the mean-standard deviation graph, the line that connects the risk-free rate and the market portfolio is called

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Chapter1: Making Economics Decisions

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Question

Please try to answer both in 30 minute just need final answer

In the mean-standard deviation graph, the line that connects the risk-free rate and the market
portfolio is called
O a. the Security Market Line
Ob. the Indifference Curve
Oc. the investor's utility line
O d. the Capital Market Line
O e. none of the above

Your personal opinion is that security X has an expected rate of return of 0.16. Its beta is
equal to 1.2. The risk-free rate is 0.03 and the market expected rate of return is 0.11.
According to the Capital Asset Pricing Model,this security is
O a. underpriced.
O b. overpriced.
Oc. aity priced.
O d. cannot be determined from dala provided.
O e. none of the above.

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