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A stock is expected to earn 35 percent in a boom economy, 19.50 percent in a normal economy, and lose 35 percent in a recessionary
A stock is expected to earn 35 percent in a boom economy, 19.50 percent in a normal economy, and lose 35 percent in a recessionary economy. There is a 15 percent chance the economy will boom and a 65 percent chance the economy will be normal. What is the expected risk premium for this stock if the risk-free rate is expected to be 5.30 percent? 4.67 percent 4.23 percent 5.63 percent 5.34 percent
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