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You bought an asset for $1,110. You expect this asset to produce the following two possible future values: Probability Future Value 0.65 ? $3,200

 

You bought an asset for $1,110. You expect this asset to produce the following two possible future values: Probability Future Value 0.65 ? $3,200 $-1,400 At the same time, you could have purchased another asset (for the same price) which would produce a future value of $1,350 for sure. What is the expected excess return of this asset? (recall that the probabilities add to 1) Answer in percent without the symbol

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