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Firm X has a RELATIVE VOLATILITY of 2 with the market, where RELATIVE VOLATILITY is a ratio that compares the firms volatility to the volatility
Firm X has a RELATIVE VOLATILITY of 2 with the market, where RELATIVE VOLATILITY is a ratio that compares the firms volatility to the volatility of the market. The standard deviation of returns on the market is 10%. The correlation coefficient of the firm with the market is .
5. What is BETA of Firm X? What is the standard deviation of returns of Firm X?
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