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The Historical Returns for the Past Three Years for Stock

Question 48

Multiple Choice

The historical returns for the past three years for Stock B and the stock market portfolio are Stock B: 24 percent, 0 percent, 24 percent; market portfolio: 10 percent, 12 percent, 20 percent. Calculate the beta for Stock B.


A) 0.86
B) 1.00
C) 1.13
D) 1.17

Correct Answer:

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