Fi 2023 24 Chapter 4 Part I - Exercises
Fi 2023 24 Chapter 4 Part I - Exercises
Chapter 4 - Part I
Nelson Areal
Management Department
Exercise 5 - (BKM - 2022: Chapter 5)
Suppose your expectations regarding the stock market are as
follows:
State of the
Probability HPR
economy
Boom 0.3 44%
Normal Growth 0.4 14%
Recession 0.3 -16%
...continuation
Average(rM ) rf
Ā = 2
Sample M
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