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Draw the SML and plot asset C such that it has less risk than the market but plots above the SML,and asset D such that it has more risk than the market and plots below the SML. (Be sure to indicate where the market portfolio is on your graph.) Explain how assets like C or D can plot as they do and explain why such pricing cannot persist in a market that is in equilibrium.
Racial Segregation
The enforced separation of different racial groups within a country, community, or establishment, often resulting in discriminatory practices.
Civil War Amendments
Refers to the 13th, 14th, and 15th amendments to the United States Constitution, which abolished slavery, granted citizenship rights, and protected voting rights regardless of race, respectively.
Due Process
A fundamental principle in the justice system that guarantees fair treatment through the normal judicial system, especially a citizen's entitlement to notice of a charge and a hearing before any governmental deprivation of life, liberty, or property.
Plessy v. Ferguson
A landmark 1896 U.S. Supreme Court case that upheld the constitutionality of racial segregation under the "separate but equal" doctrine.
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