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A stock with a beta of 1.60 O is less volatile than an average-risk security in the market O will yield exactly 16% per year.

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A stock with a beta of 1.60 O is less volatile than an average-risk security in the market O will yield exactly 16% per year. O is an average-risk security in the market. O is more volatile than an average-risk security in the market. O will, in general, move up by 1.60% if the market moves up by 10%

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