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9. Consider the following information on Stock I and II Rate of Return if State Occurs State of Econonm Recession Normal Irrational exuberance Probability of

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9. Consider the following information on Stock I and II Rate of Return if State Occurs State of Econonm Recession Normal Irrational exuberance Probability of Stock I 0.09 0.42 0.26 State of Econom 0.15 0.70 0.15 Stock II 0.30 0.12 044 The market risk premium is 10%, and the risk-free rate is 4% a. What is the expected return on Stock? b. What is the expected return on Stock II? c. Which stock has higher systematic risk

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