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As the return on the market is 22 percent, the stock return is 30 percent, while...

As the return on the market is 22 percent, the stock return is 30 percent, while the return on the market -10

percent, the return on the stock is -14 percent. Based on this information what is the most likely value of the beta

of this stock?

               

Question 4 options:

1.4

1

2.5

0.7
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Answer #1

Beta: = Change stock returns/Change in market returns = -44/-32 = 1.4 Hence, correct option is 1.4 *Please rate thumbs up

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