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Consider a stock that has a standard deviation of 10.4% and the correlation with the market...

Consider a stock that has a standard deviation of 10.4% and the correlation with the market is 0.54. The standard deviation of the market is 16.3%. What is the beta of the stock? Enter your answer rounded to 2 DECIMAL PLACES.

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Answer #1

\beta = \frac{0.54 * 0.104}{0.163}

\beta = 0.34

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