Suppose that the price of corn is risky, with a beta of .5. The monthly storage cost
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Suppose that the price of corn is risky, with a beta of .5. The monthly storage cost is $.03, and the current spot price is $2.75, with an expected spot price in 3 months of $2.94. If the expected rate of return on the market is 1.8% per month, with a risk-free rate of 1% per month, would you store corn for 3 months?
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