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A portfolio lies on the security market line. It has an expected return of 12% and a covariance with the market portfolio of 0.015. The

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A portfolio lies on the security market line. It has an expected return of 12% and a covariance with the market portfolio of 0.015. The standard deviation of the market portfolio is 10% and the risk-free rate is 3%. What is the market risk premium? 3.00% 5.00% 6.00% 08.00% None of the above

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