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Marked out of 15.00 Consider the following information about three stocks. Rate of Return of State Occurs aquestion State of Probability of Economy State of
Marked out of 15.00 Consider the following information about three stocks. Rate of Return of State Occurs aquestion State of Probability of Economy State of Economy Stock A Boom .20 Normal .45 Bust Stock B Stock 28 .40 22 .35 56 .18 - 48 .20 -20 .00 If your portfolio is invested 30 percent each in A and B, and if the expected T-billi rate is 4.20 percero, what is the expected risk premam on the portfolio? Hint: First find how much you should invest in Stock C. Then, try to find risk premium of the portfolio Please provide your answer in percentage (%), and in two decimals
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