Refer to "Mini Case Study $-$ Lecture Topic $2$ and $3"$ to answer this multi$-$part question.

In the case, Sharpe states: "I did my dissertation under a strongly simplified assumption that only one factor

caused correlation. The result I got was in that setting, prices would adjust until expected returns were higher

for securities that had higher betas, where beta was the coefficient with the factor'... The key insight of the

Capital Asset Pricing Model is that higher expected returns go with the greater risk of doing badly in bad

times. Beta is a measure of that. Securities or asset classes with high betas tend to do worse in bad times

than those with low betas."

The market return E$($r$)$ is $10\%.$ The risk$-$free rate is $4\%$

What is the market risk premium?

If your answer Is a $\%,$ enter as a decimal to $4$ decimal places e$.$g$.,$ if your answer is $5\mathrm{.}23\%,$ enter $0\mathrm{.}0523.$ If

your answer is a whole number, enter to $2$ decimal places e$.$g$.,$ if your answer is $11\mathrm{.}4578,$ enter $11\mathrm{.}46.$