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2. Given that the standard deviation of the stock market return (M)=8%, the standard deviation of Sanyou.com stock returns (S)=14%, correlation coefficient between the market

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2. Given that the standard deviation of the stock market return (M)=8%, the standard deviation of Sanyou.com stock returns (S)=14%, correlation coefficient between the market returns and Sanyou.com stock returns (PM,S)=0.8.Cov(S,M) is the covariance. Compute the beta of Sanyou.com stock (15 points). s,M=sMCov(S,M)s=M2Cov(S,M)

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