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I am not able to solve this question can someone help 1,4) Suppose you observe the following situation State of Economy Recession Normal Irrational suberance
I am not able to solve this question can someone help
1,4) Suppose you observe the following situation State of Economy Recession Normal Irrational suberance Probability of State 8.30 2.50 0.20 Hatco leturn state occurs Stock Stock B -0.10 -0.00 0.11 0.11 0.46 2.26 o. Calculate the expected return on each stock (Round the final answers to 2 decimal places) Expected Returns Stock Stock b. Assuming the capital asset pricing model holds and stock As beta is greater than stock B beta by 045, what is the expected market risk premium? (Do not round Intermedinte calculations. Round the final answer to 2 decimal places Expected market risk premium Step by Step Solution
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