The market price of risk is expected

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Reference no: EM131621250

The market price of risk is expected to be 6% and the risk-free is estimated to be 3.5% over the coming period. You have estimated the beta of your security equal to 75. Plot the SML, identify the co-ordinates of the market and your security. If over the period you believe due to company activities the actual return will be 7.0% plot that position and explain what should happen in an efficient market context.

Reference no: EM131621250

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