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I need help to answer this q1 and q2 1) If the risk-free rate (Rt) equals 4% and a stock with a beta (fi) of

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I need help to answer this q1 and q2

1) If the risk-free rate (Rt) equals 4% and a stock with a beta (fi) of 0.8 has an expected market return E(Rm) of 10%, what is the expected return on the market portfolio E(Ri)? Use following formula E(Ri) = R; + 3;(E(Rm) - Rj) - 2) Describe; a) forward contract, b) future contract and c) options. (Chapter 10)

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