Question: If risk-free rate is 5%, average risk aversion is 2, and the standard deviation of the market portfolio M is 20%. According to the CAPM

If risk-free rate is 5%, average risk aversion is 2, and the standard deviation of the market portfolio M is 20%. According to the CAPM model, what is the expected return of the market portfolio, M?

		12%
		13%
		14%
		15%

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