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Problem 8 . 0 8 ( Beta Coefficient ) Given the following information, determine the beta coefficjent for Stock L that is consistent with equilibrium:

Problem

8.08 (

Beta Coefficient

)

Given the following information, determine the beta coefficjent for Stock

L

that is consistent with equilibrium: hat

(r)_{L} = 14.5 %

;

r_{R F} = 1.5 %

;

r_{M} = 12.5 % .

Round your answer to two decimal places.

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