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Consider the following information on three stocks: table [ [ table [ [ State of Economy ] , [ Probability of State ]
Consider the following information on three stocks:
tabletableState of EconomyProbability of Stateof EconomyRate of Return if State Occurs,,,Stock AStock BStock CNormalBust
A portfolio is invested percent each in Stock A and Stock B and percent in Stock C The expected Tbill rate is percent. What is the expected risk premium on the portfolio?
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