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1. If required risk premium= Ao? , where A=2, and risk free rate = 1%, what are the annual required rates of return for the
1. If required risk premium= Ao? , where A=2, and risk free rate = 1%, what are the annual required rates of return for the following investments? What will be the value of these investments after 2 years, if these investments have achieved the required return rates? Investment standard deviation value today 0.4 $1,000 $1,000 $1,000 $1,000 1 2 0.5 3 0.6 4 0.2
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