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Example 3 You are considering investing in Z plc The correlation coefficient between the company's returns and the return on the market is 07 The

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Example 3 You are considering investing in Z plc The correlation coefficient between the company's returns and the return on the market is 07 The standard deviation of the returns for the company and the market are 8% and 5% respectively. Calculate the beta value be = 0.7 x 8% = 1.12 5%

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