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Sarah recently invested in real estate with the intention of selling the property one year from today. She has modeled the returns on that investment

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Sarah recently invested in real estate with the intention of selling the property one year from today. She has modeled the returns on that investment based on three economic scenarios. She believes that if the economy stays healthy, then her investment will generate a 30 percent return. However, if the economy softens, as predicted, the return will be 10 percent, while the return will be -25 percent if the economy slips into a recession. If the probabilities of the healthy, soft, and recessionary states are 0.7.0.2 and 0, 1, respectively, then what are the expected return and the standard deviation of the return on Sarah's investment? (Round answers to 3 decimal places, eg. 0.125 and round intermediate calculations to 5 decimal places, 88, 0.07680.) Expected return Standard deviation Assume the expected return on the market is 6 percent and the risk-free rate is 4 percent. Your answer is incorrect. What is the expected return for a stock with a beta equal to 2.00? (Round answers to 2 decimal places, e.g- Expected return Your answer is incorrect. What is the market risk premium? (Round answers to 2 decimal places, eg. 0.25.) Market risk premium

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