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

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Let the risk-free rate be 4%. Consider financial market m. Suppose the economy 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 Scenario Boom Bust Market Portfolio M - 8%. 3274 Stocka 10% 387 4 List, in general form what you have ways to compute the expected rate return on stock (Hint: no need for cmputations or elaborations) 2 Find the expected reate of return On stock Aim two different ways

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