24) Consider the following information: The market risk premium is 5.2 percent, and the risk-free rate...
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24) Consider the following information: The market risk premium is 5.2 percent, and the risk-free rate is 2.4 percent. The beta of Stock XY is and the beta of Stock ZZ is Recession Normal Boom State of Economy O A) 1.47; 1.76 OB) 1.21; 1.76 O C) 1.47; 1.41 OD) 1.94; 2.13 Probability of State of Economy .10 .65 .25 Rate of Return if State Occurs Stock XY .085 .123 .145 Stock ZZ .110 .133 .150 24) Consider the following information: The market risk premium is 5.2 percent, and the risk-free rate is 2.4 percent. The beta of Stock XY is and the beta of Stock ZZ is Recession Normal Boom State of Economy O A) 1.47; 1.76 OB) 1.21; 1.76 O C) 1.47; 1.41 OD) 1.94; 2.13 Probability of State of Economy .10 .65 .25 Rate of Return if State Occurs Stock XY .085 .123 .145 Stock ZZ .110 .133 .150
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The market risk premium is 52 percent and the riskfree rate is 24 percent This means that the ... View the full answer
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