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Asset Y has a beta of 1.2. The risk-free rate of return is 6 percent, while the return on the market portfolio of assets is

Asset Y has a beta of 1.2. The risk-free rate of return is 6 percent, while the return on the market portfolio of assets is 12 percent. The market risk premium is ________.

Taken from Principles of Managerial Finance Chad J. Zutter; Scott B. Smart

7.2 percent

10 percent

13.2 percent

6.0 percent

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