Beta of the Stock = % Change in Stock Return / % Change in Market Return
% Change in Stock Return = 6.8% - 5 / 5 = 0.36 OR 36%
% Change in Market Return = 3.6 - 3 / 3 = 0.20 o 20%
Beta = 36% / 20% = 1.8
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Consider the following table for the expected returns of the market and the expected returns of...
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