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Suppose we have the following probability distribution for asset B: State Probability Estimated Return Recession 0.3 -12% Neutral 0.2 35% Expansion 0.5 9% What is
Suppose we have the following probability distribution for asset B: State Probability Estimated Return Recession 0.3 -12% Neutral 0.2 35% Expansion 0.5 9% What is the expected risk premium for asset B if the risk free rate is 2%? Please give your answer in percent terms rounded to two decimal places. Your Answer: Answer units Suppose we have the following probability distribution for asset A: State Probability Estimated Return Recession 0.3 -15% Expansion 0.7 26% What is the expected return for asset A? Please give your answer in percent terms rounded to two decimal places. Your Answer: Answer units
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