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Math Finance 2. Assume the beta of stock XYZ is 2.3 , which the beta of stock ABC is -0.6 . Further, assume the risk-free

Math Finance

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2. Assume the beta of stock XYZ is 2.3 , which the beta of stock ABC is -0.6 . Further, assume the risk-free rate is 0.03 . a) Find the expected return on both ABC and XYZ if the expected market return is 0.1 b) Same questions with the expected market return being 0.4 c) Same questions with the expected market return being -0.05

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