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Risk and Risk Premium The table here shows the no-arbitrage prices of securities A and B that we calculated. Cash Flow in One Year Security

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Risk and Risk Premium The table here shows the no-arbitrage prices of securities A and B that we calculated. Cash Flow in One Year Security Market Price Today Weak Economy Strong Economy Security A 231 600 Security B 346 600 0 . a. What are the payoffs of a portfolio of one share of security A and one share of security B? b. What is the market price of this portfolio? What expected return will you earn from holding this portfolio

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