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Company A's Historical Returns for the Past Three Years Are

Question 60

Multiple Choice

Company A's historical returns for the past three years are 6 percent, 15 percent, and 15 percent. Similarly, the market portfolio's returns were 10 percent, 10 percent, and 16 percent. Calculate the beta for Stock A.


A) 1.75
B) 1.00
C) 0.57
D) 0.75

Correct Answer:

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