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If the risk-free rate is 7 percent, the expected return on the market is 10 percent, and the expected return on Security J is 13

If the risk-free rate is 7 percent, the expected return on the market is 10 percent, and the expected return on Security J is 13 percent, what is the beta of Security J?

a.

2.5

b.

1.0

c.

3.0

d.

2.0

e.

1.5

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