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Consider the market model as follows R p= p + b p R M + e p Show R 2 as a formula Assume beta

Consider the market model as follows

R_p= _p + b_pR_M + e_p

Show R² as a formula

Assume beta of your portfolio is 0.88, standard deviation of your portfolio is 20 % and standard deviation of the market is 16 % . Calculate R².

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