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5. Answer the following question related to CAPM beta. a) What does a stock's beta show? Explain. (3 points) b) Following table shows beta of

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5. Answer the following question related to CAPM beta. a) What does a stock's beta show? Explain. (3 points) b) Following table shows beta of individual three stocks Stock Beta GE 1.00 Walmart 0.6 Bocing 1.8 Interpret the beta of each company. During recession, whiclh stock should be safer and why? (7 Points)

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