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Please provide solutions Suppose securities A,B and C have the payoffs shown in the table, the risk-free interest rate is 2%. You are given that
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Suppose securities A,B and C have the payoffs shown in the table, the risk-free interest rate is 2%. You are given that a. Both states - weak and strong economy - are equally likely b. There are no arbitrage opportunities available with securities A, B and C c. security A's risk premium is 23% d. security B 's risk premium is 15.8% Fill in the missing numbers Step by Step Solution
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