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Assume that the risk-free rate is 2.99 percent and that the market portfolio has a 27 percent expected return with a 35 percent volatility (standard
Assume that the risk-free rate is 2.99 percent and that the market portfolio has a 27 percent expected return with a 35 percent volatility (standard deviation). Word Inc. has a volatility of 47 percent and a correlation with the market of .82, whilst Excel Inc. has a volatility of 45 percent and a correlation with the market of 0. Assume that the CAPM assumptions are correct.
Obtain Excels beta with the market.
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