1. Stock betas (S8.1) What is the beta of each of the stocks shown in Table 8.6?

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PROBLEM SETS ®

Stock Return if Market Return Is:

Stock −10% +10%

A − 5 + 5 B −20 +20 C −8 +8 D +5 +5 E +10 −10

⟩ TABLE 8.6 Stock betas. See Problem 1.