Consider the Following Data for Securities a and B $\bar { R } _ { A } = 20 \%$

question 44

Essay

Consider the following data for securities A and B: $\bar { R } _ { A } = 20 \%$ ; $\bar { R } _ { B } = 10 \%$ ; $\beta _ { \mathrm { A } } = 1.5$ ; $\beta _ { B } = 0.5$ .
Assume that the zero-beta CAPM holds and that all securities are in equilibrium.Plot the Security Market Line.Be sure to label all points.

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