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17. An investment analyst estimates the following regression between the return on a stock (R) and the return on S&P 500 index (RSP): R =

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17. An investment analyst estimates the following regression between the return on a stock (R) and the return on S&P 500 index (RSP): R = 5% +1.2 RSP + error term Assuming error term is zero ("0"), Estimate the change in the return on the stock when the return on the S&P 500 index changes from 11% to 14%. A). 4.5% B). 3.6% 3 C). 5.3% D). 6.8% E). 3.4%

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