Question: Let E be 0.8, the risk free return be 3% and the expected return on the market portfolio be 9%. What is the expected equity

Let E be 0.8, the risk free return be 3% and the expected return on the market portfolio be 9%. What is the expected equity

return according to CAPM?

(a) 7.80%

(b) 6.50%

(c) 12%

(d) 10.20%

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