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Q21: The risk-free rate is 3.4 percent and the expected return on the market is 10.8 percent. Stock A has a beta of 1.18.

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Q21: The risk-free rate is 3.4 percent and the expected return on the market is 10.8 percent. Stock A has a beta of 1.18. For a given year, stock A returned 13.6 percent while the ma returned 11.8 percent. The systematic portion of the unexpected return was and the unsystematic portion was percent. perce

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