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The risk-free rate in the economy is 4.0% per year. The expected return on Asset A is 9.2%. There is a fairly-priced futures contract on
The risk-free rate in the economy is 4.0% per year. The expected return on Asset A is 9.2%. There is a fairly-priced futures contract on Asset A that matures in 17 months. What is the expected return for the buyer of the futures contract? Write your answer out to four decimals - for example, write 6.23% as .0623.
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