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Suppose you forecast that the standard deviation of the market return will be 20% in the coming year. If the measure of risk aversion in

Suppose you forecast that the standard deviation of the market return will be 20% in the coming year. If the measure of risk aversion in A=(E(Rm)-Rf)/o^2m is A = 4. a. What would be a reasonable guess for the expected market risk premium? b. What value of A is consistent with a risk premium of 9%? (Round your answer to 2 decimal places.)

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