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economy Let the risk-free reate be 4%. Consider financial market m. Suppose the has two scenarios : boom or bust. The returns in each scenario

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economy Let the risk-free reate be 4%. Consider financial market m. Suppose the has two scenarios : boom or bust. The returns in each scenario for the market portfolio Mand a stock A that is treaded in M are given in the following table : Rates of return and states Scenarily Boom Bust Market Portfolio M -87 3274 Stock A 10% 38% 4 List, in general form what you have ways to compute the expected rate return on stock (Hint: no need for computations or elaborations) 2 Find the expected reate of return On stock Aim two different

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