The risk free rate- average market return

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Reference no: EM131928910

Given the following information should the asset be purchased?

Statefeconomy Boom Normal Bust

Probability .25 .5 .25

Return 16% 14% 12%

The risk free rate is 5%.the average market return is 12%.The beta of the asset is 1.

Reference no: EM131928910

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