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3. Profit corp. analysts estimated the following probability distributions for its stocks. What is their expected rate of return? State of Economy Stock return Prob.
3. Profit corp. analysts estimated the following probability distributions for its stocks. What is their expected rate of return? State of Economy Stock return Prob. of state occurring Recession Normal Boom -5% 5% 15% 4. Turner corp. stocks had a required rate of return of 8%. Risk free rate was 3% and market risk premium was 6%. Analysts are expecting an increase in investor risk aversion increasing market risk premium by 2%. What will be the firm's new required rate of return
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