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Question 3. Suppose a stock has a (Single Index Model) B. = 1 and a = 0, and the current futures price is $100 for

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Question 3. Suppose a stock has a (Single Index Model) B. = 1 and a = 0, and the current futures price is $100 for a 1 year futures contract. The expected return on the market is E[rm] = 0.05. The risk-free rate is rf = 0.01. What is the expected spot price of the stock in 1 year

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