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1 7 ) Security A has an expected rate of return of 1 2 % and a beta of 1 . 1 . The market

17) Security A has an expected rate of return of 12% and a beta of 1.1. The market expected rate of return is 8%, and the risk-free rate is 5%. The alpha of the stock is ?
18) If the beta of the market index is 1 and the standard deviation of the market index increases from 12% to 24%, what is the new beta of the market index?

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