Question: Calculate E(r) and the risk premium for each asset using the provided information about the probability of the state of the economy and the indicated
Calculate E(r) and the risk premium for each asset using the provided information about the probability of the state of the economy and the indicated returns.
| Economy | Profitability | T-Bill | AT&T | Amazon | Market Portfolio |
| Below Average | 18% | 2% | 4% | 24% | 7% |
| Average | 60% | 2% | 12% | 16% | 12% |
| Above Average | 22% | 2% | 14% | 15% | 21% |
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