Multiple Choice
Consider the capital asset pricing model. The market degree of risk aversion, A, is 3. The risk premium is 2.25%. If the risk-free rate of return is 4%, the expected return on the market portfolio is ________.
A) 6.75%
B) 9%
C) 10.75%
D) 12%
Correct Answer:
Verified
Correct Answer:
Verified
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