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Intro We know the following expected returns for stock A and the market portfolio, given different states of the economy: State (s) Probability E(TA,s) E(TM,s)

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Intro We know the following expected returns for stock A and the market portfolio, given different states of the economy: State (s) Probability E(TA,s) E(TM,s) Recession 0.1 -0.04 0.04 Normal 0.5 0.11 0.07 Expansion 0.4 0.19 0.11 The risk-free rate is 0.02. Part 1 18 - Attempt 2/10 for 10 pts. Assuming the CAPM holds, what is the beta for stock A? 2+ decimals Submit

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