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9(10) Get the expected return on the carp business (CAPM), the market risk premium, the market Sharp ratio, the carp business beta( ) and SML,
9(10) Get the expected return on the carp business (CAPM), the market risk premium, the market Sharp ratio, the carp business beta( ) and SML, respectively. However, the risk-free interest rate ( ) is 2%, and the return on the carp business (r) and market number (rm ) are as follows in each situation.
| state | probability | rate of return |
r | boom recession | 0.5 0.5 | 40% 20% |
rm | boom recession | 0.5 0.5 | 20% 10% |
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