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Use the data provided in the table below to answer the questions that follow. Assume that the CAPM holds. Security A B Market Portfolio

Use the data provided in the table below to answer the questions that follow. Assume that the CAPM holds. Security A B Market Portfolio Expected Return Standard Deviation Beta of Returns 5% 25% 0.5 11% 18% 15 8% 15% 1.0 (2 marks) What is the market risk premium and the risk-free rate of return?

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