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Suppose you observe the following situation: State of Probability of State of Economy Rate of Return if State Occurs Economy Stock A .189 .158 246

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Suppose you observe the following situation: State of Probability of State of Economy Rate of Return if State Occurs Economy Stock A .189 .158 246 Stock B .097 .076 21 .74 .05 Boom Normal Recession 042 Assume the capital asset pricing model holds and Stock A's beta is greater than Stock B's beta by 84. What is the expected market risk premium

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