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QUESTION #1. Suppose risk-free rate of return = 2%, market return = 7%, and Stock Bs return = 11%. a. Calcuate Stock Bs beta. b.

QUESTION #1. Suppose risk-free rate of return = 2%, market return = 7%, and Stock Bs return = 11%.

a. Calcuate Stock Bs beta.

b. If Stock Bs beta were 0.80, what would be its new rate of return?

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