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1. What are the implications of the empirical SML being “too flat”?

2. What are the challenges for the Foreign investor in another country? Into

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3. Today is your 21st birthday and your bank account balance is $15,000. Your account is earning 4.5% interest compounded semiannually. How much will be in the account on your 50th birthday?

a. $53,761 b. $54,521 c. $55,984 d. $58,429

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