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Daniel have established an investment portfolio of two stocks A and B five years ago. Required: Assume that expected return of the stock A in
Daniel have established an investment portfolio of two stocks A and B five years ago. Required: Assume that expected return of the stock A in his portfolio is 13.2%. The risk premium on the stocks of the same industry are 4.6%, the risk-free rate of return is 4.8% and the inflation rate was 1.5. Calculate beta of this stock using Capital Asset Pricing Model (CAPM)
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