Question
Suppose the followings: Rate of Return State of economy Probability of state Stock X Stock Y Recession .35 .11 .09 Normal .40 .10 .10 Boom
Suppose the followings: Rate of Return State of economy Probability of state Stock X Stock Y Recession .35 .11 .09 Normal .40 .10 .10 Boom .25 .45 .25 Suppose CAPM holds here and that the beta of Stock X is larger than that of Y by 0.65. What should be the expected market risk premium?
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The Financial Times Guide To Technical Analysis How To Trade Like A Professional
Authors: Jacinta Chan
1st Edition
0273751336,0273751751
