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Discuss what beta measures and explain how it is used in risk analysis. The expected rates of return and the beta coefficients of the alternatives

Discuss what beta measures and explain how it is used in risk analysis. The expected rates of return and the beta coefficients of the alternatives are as follows.

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What is a beta coefficient, and how are betas used in risk analysis? Do the expected returns appear to be related to each alternative s market risk? Is it possible to choose among the alternatives on the basis of the information developed thus far?

Security Return () Risk (B) High Tech Market U.S. Rubber T-bills Collections 17.4% 15.0 13.8 8.0 1.7 1.29 1.00 0.68 0.00 -0.86

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