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Suppose you observe the following situation: Security Beta Expected Return A 1.16 .1137 B .92 .0984 Assume these securities are correctly priced. Based on the

Suppose you observe the following situation:

Security	Beta	Expected Return
A	1.16	.1137
B	.92	.0984

Assume these securities are correctly priced. Based on the CAPM, what is the market risk premium?

Multiple Choice

11.42 percent
9.78 percent
10.35 percent
6.37 percent
11.01 percent
9.99 percent

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