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In which interval is given the risk premium of asset X (stated in percent) In the table below, information about the market index, asset X
In which interval is given the risk premium of asset X (stated in percent)
In the table below, information about the market index, asset X and the risk-free asset on a given normal market are stated. next year is 1%. DKK Cash flow year 1 Recession Boom Asset Market price (DKK) today (t=0) (P = 50%) 400 Market index Asset X Risk-free asset 500 252.48 247.52 (P = 50%) 700 450 250 150 250 In which interval is given the risk premium of asset X (stated in percent)? (Hint: Start by determining the return of asset X in each state)Step by Step Solution
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