Consider the data on expected returns and betas for a variety of assets in the table below. What is the expected return on shares of Bank of America using the SML?
Asset Expected Return Beta
Bank of America 0.9
Risk Free Asset 4% 0
Market Portfolio 10% 1
A) 5.4%
B) 6.0%
C) 8.2%
D) 9.4%
E) 11.2%
D
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Indicate whether the statement is true or false
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Which of the following is true of bailments for the sole benefit of the bailee?
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