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What must the beta of this stock be

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Reference no: EM133157854

Question -

(a) A stock has an expected return of 13.5%, the risk-free rate is 5.2%, and the market risk premium is 8.5%. What must the beta of this stock be? Show your work.

(b) What does the beta of the stock (in question (a)) signify in terms of systematic risks?

Reference no: EM133157854

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