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An economy contains two risky assets. Asset X will pay off 1 in one year if the FTSE-100 rises over the next year and zero
An economy contains two risky assets. Asset X will pay off 1 in one year if the FTSE-100 rises over the next year and zero otherwise. Asset Y will pay nothing in one year if the FTSE-100 has risen over the year and 1 otherwise. The price of asset X is 0.59 and the price of asset Y is $0.32. the risk-free interest rate in this economy is closest to
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Business Finance
Authors: Brian Watts
8th Edition
0712110720, 978-0712110723
