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2. Assume the security market line given below. Assume that analysts have estimated the beta on…

2. Assume the security market line given below. Assume that analysts have estimated the beta on…

2.       Assume the security market line given below. Assume that analysts have estimated the beta on two stocks as follows: [3x = 0.5 and [3y = 2. What must the expected return on the two securities be in order for them to be a good purchase?