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The common stock of Moore Inc. is expected to lose 9% in a recession, earn 6% in a normal economy, and earn 10% in a

The common stock of Moore Inc. is expected to lose 9% in a recession, earn 6% in a normal economy, and earn 10% in a booming economy. The probability of a boom is 30 percent while the probability of a recession is 10 percent.

If the risk-free interest rate is 3%, then what is the risk premium of the stock? 2.7

Following question 1, what is the Sharpe ratio of the stock?

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