Question: Problem 5 Intro We know the following expected returns for stock A and the market portfolio, given different states of the economy: State (s) Probability

Problem 5 Intro We know the following expected returns for stock A and the market portfolio, given different states of the economy: State (s) Probability E(TA,s) =(TM,s) Recession 0.3 -0.03 0.03 Normal 0.5 0.12 0.06 Expansion 0.2 0.2 0.1 The risk-free rate is 0.02. Part 1 8 / Attempt 5/10 for 10 pts. Assuming the CAPM holds, what is the beta for stock A? 2+ decimals Submit About Blog Contact Instructor Guide Privacy Policy Supp Accepi 2012 - 2024

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