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Consider two securities which have only one cash flow one year from now and then terminate. Security X is risky and has an expected payoff
Consider two securities which have only one cash flow one year from now and then terminate. Security X is risky and has an expected payoff of 95 and a current price of 83. Security Y, an otherwise identical asset, has a riskless payoff of 100 and a current price of 90. The risk premium on Security X is closest to Not enough information to answer question 14.46% 3.35% 11.11%
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