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Q3 Please show all work or excel functions. Thanks! QUESTION 3 Suppose you forecast that the standard deviation of the market return will be 20%

Q3 Please show all work or excel functions. Thanks! image text in transcribed

QUESTION 3 Suppose you forecast that the standard deviation of the market return will be 20% in the coming year. If the measure of risk aversion in Equation 5-17 is A-4, what would be a reasonable guess for the expected market risk premium? What value of A is consistent with a risk premium of 92 c What will happen to the risk premium if investors become more risk tolerant

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