return im each seenario for the market Let the risk-free rate be 4%. Consicdere a fimaneial market M. Suppose the economy has two seenarios: boom oy bust. The return in each seenario fore the manke M...

Extracted text: return im each seenario for the market Let the risk-free rate be 4%. Consicdere a fimaneial market M. Suppose the economy has two seenarios: boom oy bust. The return in each seenario fore the manke M and a stoek 'A that is traded portfolio M in M are given in the following table Scenavio Market Portfolio M Stack A Boom -10% -8.% 38% Bust 381. 1 each seenavio is equelly likely, ansewer the follocwing questions : O List, in' learned in thes course, to compute the expected rate of return on a stoek general Prom what you 4 ways p have your anwer n payt (1), find the expected rale of ruturn on stoek A in two different aays: From