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Consider the single-index model. The alpha of a stock is 3.00%. The return on the market index is 12.75%. The risk-free rate of return is

Consider the single-index model. The alpha of a stock is 3.00%. The return on the market index is 12.75%. The risk-free rate of return is 6.00%. The stock earns a return that exceeds the risk-free rate by 6.75%, and there are no firm-specific events affecting the stock performance. What is the beta of the stock?

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