Realized Return on $7M Investment Economy Realized Return Probability Health on the Market Good 15% Average 9% Bad -3% Value of Cupcake Business in 1 Year $10M $8M $6M | Assume the risk free rate is 0%. (a): What is the realized holding period return on investment for each of the possible three states of the world? (b): What's the expected rate of return? (c): What is for the cupcake business? (This is simple to do by hand but if using Excel, be careful about population vs sample calculations) (d): What is the required rate of return on the business according to the CAPM? (e): Should you start the business