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Homework 3- ENNEC 473 Spring 2011 - Due in class, nicely typed, Monday, February 21. 2.5 points for each of the four questions. 1) 0n

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Homework 3- ENNEC 473 Spring 2011 - Due in class, nicely typed, Monday, February 21. 2.5 points for each of the four questions. 1) 0n the lush moon Pandora in the Alpha Centauri star system there is a well operating stock market. One of the stocks in this market is RDA Corporation. There are six future \"states of the planet\" as laid out below. Using the CAPM model, determine what the risk-free rate of return is on Pandora. -.I-- Event Probabili Return return -_-- --m .Imm 1\

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