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The risk-free rate in the economy is 3.2% per year. The expected return on Asset A is 8.1%. There is a fairly-priced futures contract on
The risk-free rate in the economy is 3.2% per year. The expected return on Asset A is 8.1%. There is a fairly-priced futures contract on Asset A that matures in 9 months. What is the expected return for the buyer of the futures contract? Write your answer out to four decimals. Answer Should be 0.0354. How do you get that?
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