Calculate the expected nominal risk premium

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Nominelt Cash Flow (t=1)

Asset

Price today

Recession (45%)

 Normal (55%)

Market indeks

250

50

475

Asset Z

?

100

525

Riskfree asset

?

50

50

Riskfree rate pr. year: 0,2%

Calculate the expected nominal risk premium on asset Z for t=1

Reference no: EM133111751

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