The risk free rate is 5the average market return is 12the


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.

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Financial Management: The risk free rate is 5the average market return is 12the
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