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The risk-free rate is 5.65 percent. What is the expected risk premium on this security given the following information? State of the economy Probability




The risk-free rate is 5.65 percent. What is the expected risk premium on this security given the following information? State of the economy Probability E(R) Boom 0.30 17% Normal Recession 0.45 15% 0.25 -5%

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