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Suppose ry = 0.05 is the risk-free rate of return, while the rate of return on the risky asset is 1.05 with prob. 0.4 -0.2

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Suppose ry = 0.05 is the risk-free rate of return, while the rate of return on the risky asset is 1.05 with prob. 0.4 -0.2 with prob. 0.6 What is the expected excess return on the risky asset

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