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1. Consider the CAPM. Assume investors' overall risk aversion, , is 3, the variance of the market portfolio 2.25% and the risk-free rate of return

1. Consider the CAPM. Assume investors' overall risk aversion, , is 3, the variance of the market portfolio 2.25% and the risk-free rate of return is 4%. The expected return on the market portfolio is

A. 10.75%

B. 6.75%

C 9%

D. 12%

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