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The resident Economist in the Investment Firm you work for has generated th following expected end-of-year prices for Apple and the market portfolio, conditional on
The resident Economist in the Investment Firm you work for has generated th following expected end-of-year prices for Apple and the market portfolio, conditional on the state of the economy. The market portfolio and Apple are selling for $150 and $40 today. Use this information to answer the following questions. Report your answer as a number (Example 1.0). What is the expected return of Apple according to the CAPM if the risk-free rate is 2%
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