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. o Suppose you observe the following situation: State of Leonomy Recession Normal Irrational exuberance Probability of State 0.20 0.90 0.10 Rate of Retur i

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. o Suppose you observe the following situation: State of Leonomy Recession Normal Irrational exuberance Probability of State 0.20 0.90 0.10 Rate of Retur i State Our Stock Stock B -0.00 -0.06 0.13 0.48 eBook a. Calculate the expected return on each stock. (Round the final answers to 2 decimal places.) Print Expected Return Stock Stocks b. Assuming the capital asset pricing model holds and stock A's beta is greater than stock B's beta by 0.25, what is the expected market risk premium? (Do not round Intermediate calculations, Round the final answer to 2 decimal places.) Expected market risk premium

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