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Question 26 A Treasury bill returns 6%. Asset Etret) -12% with probability 40% or ElretA)- 2% with probability 60%. 1.Calculate risk premium? 2.Which of the

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Question 26 A Treasury bill returns 6%. Asset Etret) -12% with probability 40% or ElretA)- 2% with probability 60%. 1.Calculate risk premium? 2.Which of the following is true? Arisk averter would not invest in Asset A because it has a negative risk premium buA risk averter might invest in Asset A because she is rewarded with a risk premium, Arisk averter would not invest in Asset A because she is not rewarded with a risk premium. d.Arisk averter might invest in Asset A because investment choices are a matter of personal preterence. type your answer herec

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