Question
Please help! State: Probability Fund 1 Fund 2 Fund 3 Boom 0.5 10% 36% 10% Recovery 0.25 24%. 12% 10% Recession 0.25 -4% -12% 2%
Please help!
State: Probability Fund 1 Fund 2 Fund 3
Boom 0.5 10% 36% 10%
Recovery 0.25 24%. 12% 10%
Recession 0.25 -4% -12% 2%
Fund 1 is the Market Portfolio. The risk free rate is 2%. What are the required rates of return for Fund 2 and 3?
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
