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    Risk Free Rate and Market Premium

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    If the slope of the security market line is 7% and the expected return on the market portfolio is 11%, the risk free rate is ___ % and the market risk premium is ____%.

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    Slope = expected return - standard deviation
    expcted return = Rf +beta(Rm-Rf)
    expected market return is E(Rm)
    risk free rate is Rf

    the ...