Question: Use the data provided in the table below to answer the questions that follow. Assume that the CAPM holds. Security A B Market Portfolio

Use the data provided in the table below to answer the questions

Use the data provided in the table below to answer the questions that follow. Assume that the CAPM holds. Security A B Market Portfolio Expected Return Standard Deviation Beta of Returns 5% 25% 0.5 11% 18% 15 8% 15% 1.0 (2 marks) What is the market risk premium and the risk-free rate of return?

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