Assume the CAPM model holds. Teslix stock has a beta of 1.06 and Volvix stock has a beta of 1.31. The risk-free interest

[answerhappygod]

Assume the CAPM model holds. Teslix stock has a beta of 1.06 and
Volvix stock has a beta of
1.31. The risk-free interest rate is 4% and the expected return of
the market portfolio is 12%. Assume
short selling is not allowed. Which statement is FALSE?
A) The market risk premium is equal to 8%.
B) The risk premium on Volvix is higher than the risk premium on
Teslix.
C) A portfolio consisting of Volvix and Teslix may exhibit a zero
risk premium.
D) The portfolio beta of an equally weighted portfolio consisting
of Teslix and Volvix is 1.185.