Problem 18 Intro We know the following expected returns for stock A and the market portfolio,...

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Problem 18 Intro We know the following expected returns for stock A and the market portfolio, given different states of the e

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Beta=(Expected returns of stock-risk free rate)/(Expected returns of market-risk free rate)=(0.2*(-0.06)+0.5*0.09+0.3*0.17-0.02)/(0.2*0.02+0.5*0.05+0.3*0.09-0.02)=1.7778

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