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Assets X and Y plot on the security market line. Asset X has an expected return of 12% and a beta of 1.5, and asset

Assets X and Y plot on the security market line. Asset X has an expected return of 12% and a beta of 1.5, and asset Y has an expected return of 10% and a beta of 1.2. The expected market risk premium is:

a) 8.70% b) 9.54% c) 10.20% d) 6.67% e) 9.27%

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