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Covariance between market and firm returns is 20. Standard deviations for firm and market are 4 and 5. Estimate beta for this firm. A. 0.8

Covariance between market and firm returns is 20. Standard deviations for firm and market are 4 and 5. Estimate beta for this firm.

  • A. 0.8
  • B. 1.25
  • C. 4
  • D. 5

Please include formula with your answer, thank you so much!

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