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4 . 4 Read the box The 'Beta' of a Stock in Section 4 . 2 . a . Suppose the value of is greater

4.4

Read the box "The 'Beta' of a Stock" in Section

4.2 .

.

Suppose the value of

is greater than

1

for a particular stock. Show that

the variance of

(R - R_{f})

for this stock is greater than the variance of

(R_{m} - R_{t}) .

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