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1. Answer the following question related to CAPM beta. a) What does a stock's beta show? Explain. (5 points) b) Following table shows beta of

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1. Answer the following question related to CAPM beta. a) What does a stock's beta show? Explain. (5 points) b) Following table shows beta of individual three stocks Interpret the beta of each company. During recession, which stock should be safer and why? (5 Points)

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