The sml must go through the market portfolio point since


1. A pure discount, $1,000 bond will mature in 4 years. If its present market price is $735, its yield-to-maturity is:

(a) 7.5%.    (b) 8.7%.    (c) 7.0%.    (d) 8.0%.    (e) 10.0%.

2. The SML must go through the market portfolio point since its Beta is

(a) 1. (b) 0.5. (c) 0. (d) -1. (e) 2.

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Financial Management: The sml must go through the market portfolio point since
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