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compare with the stock'n iactual espected feturn? compare with the stock's actual expectod return? a. Use the beta of a fim that goes up on

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compare with the stock'n iactual espected feturn? compare with the stock's actual expectod return? a. Use the beta of a fim that goes up on averege by 50 when the macket goes up and goes down by 10% when the market goes down to estimute the expected iekum of iss nipck. How does this compare with the stock's achual expected rehum? The beta of the stock is (Round to two decimai places.) The expectind retum of the mariket is % (Round ta two dedmal places.) Acoording to the CAPM, the expected return of the stock should be K. (Round to two decimat places.) Doos the CAPM hold in this case? (Seloct from the drop-down mend) b. Use the bota of a fem that goes up on average by 25% when the market goes down and goen down by 14% when the manket goes up to estimate the expectnd rotum of is siock. How does this compare with the stock's actual expected return? The beta of the stock is (Round to two dedimal places.) The expected return of the stock is 6. (Round to two decimal places.) Does the CAPM hold in this case? (Select from the drop-down menu.)

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