What is the market risk premium, if the risk-free rate is 9% and the expected market...

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What is the market risk premium, if the risk-free rate is 9% and the expected market return is given as follows: Conditional state of Probability the economy Optimistic Normal Pessimistic 45% 50% 5% Return 25% 15% 15%* What is the market risk premium, if the risk-free rate is 9% and the expected market return is given as follows: Conditional state of Probability the economy Optimistic Normal Pessimistic 45% 50% 5% Return 25% 15% 15%*

Answer rating: 100% (QA)

To calculate the market risk premium you can use the following formula Marke... View the full answer