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Consider the following information on Stocks I and II: table [ [ , Probability of State of , Rate of Return i , f
Consider the following information on Stocks I and II:
tableProbability of State ofRate of Return if State OccursState of Economy,Economy,Stock I,Stock IIRecessionNormaltableIrrationalexuberance
The market risk premium is percent and the riskfree rate is percent.
a What is the beta of each stock?
Note: Do not round intermediate calculations. Round your answers to decimal places.
tableBetaStock I,Stock II
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