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1 According to the financial theory, the stock return is driven by its risk where the latter is measured by beta. If you believe the

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1 According to the financial theory, the stock return is driven by its risk where the latter is measured by beta. If you believe the relationship is exact, then you will use the following formula out of 1 a. y=a+Bx b. y=Bx+u O c. y=a+Bx+u d.y=Bx

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