Question: Consider the graph below, and assume the CAPM and SML are valid. What is the MRP? 15% 6% 9% 3% 12% E(R) .18 .17 .16

Consider the graph below, and assume the CAPM and SML are valid.Consider the graph below, and assume the CAPM and SML are valid. What is the MRP?

15%

6%

9%

3%

12%

E(R) .18 .17 .16 SML .15 .14 .13 .12 .11 .10 .09 .08 .07 .06 .05 .04 .03 .02 .01 .00 Beta .25 .50 .75 1.00 1.25 1.50 1.75 2.0

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