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Consider an economy where the market can be described by three sources of systematic risk (F 1 , F 2 , and F 3 )

Consider an economy where the market can be described by three sources of systematic risk (F 1 , F 2 , and F 3 ) with associated risk premiums RP 1 = 5%, RP 2 = 2%, and RP 3 = 4%. The return on ...

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