Consider the following information on three stocks: State of Economy Boom Normal Bust Probability of State of Economy .1

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Consider the following information on three stocks: State of Economy Boom Normal Bust Probability of State of Economy .1

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Consider The Following Information On Three Stocks State Of Economy Boom Normal Bust Probability Of State Of Economy 1 1
Consider The Following Information On Three Stocks State Of Economy Boom Normal Bust Probability Of State Of Economy 1 1 (53.3 KiB) Viewed 43 times
Consider the following information on three stocks: State of Economy Boom Normal Bust Probability of State of Economy .15 .65 .20 Rate of Return if State Occurs Stock A Stock B Stock C .27 .15 .11 .14 .11 .09 -.19 -.06 .05 A portfolio is invested 45 percent each in Stock A and Stock B, and 10 percent in Stock C. The expected T-bill rate is 3.2 percent. What is the expected risk premium on the portfolio? A. 5.55% B. 12.38% C. 1.67% D. 4.29%
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