Assume we're in the CAPM world. Suppose the volatility on the market portfolio is mkt=0.2=20%,...
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Assume we're in the CAPM world. Suppose the volatility on the market portfolio is mkt=0.2=20%, and that investors have an average risk aversion of A=2.9. What is the market risk premium E[rmkt]rf ? Express your answer as a percent. For example, if you find a market risk premium of 0.101=10.1%, write 10.1 in the answer box. Enter the exact value, do not round off
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