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2. Consider two securities both of which are dependent on the same market variable. The expected returns from the securities are 6% and 8%. The

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2. Consider two securities both of which are dependent on the same market variable. The expected returns from the securities are 6% and 8%. The volatility of the first security is 5%. The instantaneous risk-free rate is 4%. What is the volatility of the second security? (5 points)

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