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4. Consider the CAPM line shown below. What is the excess return of the market over the risk-free…

4. Consider the CAPM line shown below. What is the excess return of the market over the risk-free…

4.       Consider the CAPM line shown below. What is the excess return of the market over the risk-free rate? What is the risk-free rate?  5.       Write the CAPM shown in Problem 4 in price form.6.       Show that the standard CAPM should hold even if short sales are not allowed.