Question: There are two assets. Their expected returns are 6 % and 1 2 % ( Asset 1 and Asset 2 ) . Their betas are

There are two assets. Their expected returns are 6% and 12%(Asset 1 and Asset 2). Their betas are 1 and 2(Asset 1 and Asset 2). Assuming that CAPM holds, what is the risk premium on the market portfolio?

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