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An asset has beta equal to 2 , the market risk premium is 5 % , and the risk - free rate is 1 %

An asset has beta equal to 2, the market risk premium is 5%, and the risk-free rate is 1%. Assume the CAPM holds, assess the validity of the following two statements:
I. The asset variance is twice that of the market portfolio.
II. The asset expected return is twice that of the market portfolio.

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