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Here is a result of a regression of excess GE stock retur on excess market (S&P500) index return, RGE - Ry= a +B(RM - Rp)

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Here is a result of a regression of excess GE stock retur on excess market (S&P500) index return, RGE - Ry= a +B(RM - Rp) + , from Excel. Using this result, answer the following questions Multiple R Ned R. SAVE Standard rer Ohervations Coefenis Mandard Em 403 1542 Star 0.36 Interp Market OSO 0.10 1. The market risk exposure of this stock is 2. The characteristic line for this stock is Rce - Rp X(RM-RP) 3. The stock is % riskier than the market. 4. As per CAPM, the expected market return given an expected return on a security of 11.35 % and a risk-free interest rate of 5% would be %. (Note: Round to the nearest hundredth.)

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