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

If the risk-free rate is 5%, the 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 market risk premium?

		10%
		9%
		8%
		7%

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