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Problem 1 What is the expected excess return (risk premium) of investing in equities and T-bills based on the following table? What is the volatility

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Problem 1 What is the expected excess return (risk premium) of investing in equities and T-bills based on the following table? What is the volatility of equity returns? Investment Probability Realized Return Equities 70% 20% 30% -10% T-bills 100% 4%

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