Question: Stock ABC has four possible returns in the next week: -10% (probability: 50%), 0% (probability: 15%), 5% (probability: 15%) , 10% (probability: 20%).The risk-free rate

Stock ABC has four possible returns in the next week: -10% (probability: 50%), 0% (probability: 15%), 5% (probability: 15%) , 10% (probability: 20%).The risk-free rate is 3%. What is the expected excess rate of return of ABC?

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