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8. Problem 8.08 Click here to read the eBook: The Relationship Between Risk and Rates of Return BETA COEFFICIENT Given the fo

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Answer #1

Required return=risk free rate+beta*(market rate-risk free rate)

9.5=4.65+Beta*(12-4.65)

Beta=(9.5-4.65)/(12-4.65)

=0.66(Approx).

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