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What is the risk premium for the following returns if the risk-free rate is 5%? (Answer: 0.085) 2. What is the risk premium for the

What is the risk premium for the following returns if the risk-free rate is 5%? (Answer: 0.085)

2. What is the risk premium for the following returns if the risk-free rate is 5%? (Answer: 0.085) State Recession Depression Probability .15 .50 .25 .10 Return .60 .20 -.10 -.30

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