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Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .25 .34 .46 .58

Rate of Return If State Occurs
State of Probability of
Economy State of Economy Stock A Stock B Stock C
Boom .25 .34 .46 .58
Normal .50 .14 .12 .10
Bust .25 .05 .26 .46

What are the approximate and exact expected real risk premiums on the portfolio?

Approximate expected real risk premium: ?

Exact expected real risk premium: ?

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