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please show work 2. Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock
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2. Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B .097 .102 Recession Normal Boom .04 .72 .24 .114 .133 .156 .148 The market risk premium is 7.4 percent, and the risk-free rate is 3.1 percent. What is the beta of Stock A? (7 pts)Step by Step Solution
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
