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4) A portfolio lies on the security market line

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4) A portfolio lies on the security market line. It has an expected return of 12% and a covariance with the market portfolio of 0.015. The standard deviation of the market portfolio is 10% and the risk-free rate is 3%. What is the market risk premium? a) 3.00% b) 5.00% c) 7.00% d) 8.00% e) None of the above