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What is the risk premium for the following returns if the risk-free rate is 5%? State Probability Return (%) Boom 0.15 60 Good 0.50 20
What is the risk premium for the following returns if the risk-free rate is 5%? State Probability Return (%) Boom 0.15 60 Good 0.50 20 Recession 0.25 -10 Depression 0.10 -30 12.50% 8.50% 10.00% 13.50% 17.50%
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