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QUESTION Refer to the following observations for stock A and the market portfolio in the table: Month Rate of return Stock A Market portfolio 1

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QUESTION Refer to the following observations for stock A and the market portfolio in the table: Month Rate of return Stock A Market portfolio 1 0.30 0.12 2 0.24 0.08 3 -0.04 -0.10 4 0.10 -0.02 5 0.06 0.08 0.10 0.07 a) Calculate the main statistic measures to explain the relationship between stock A and the market portfolio: The sample covariance between rate of return for the stock A and the market; The sample Beta factor of stock A; Louis David Jnr. Annor 6 7/12/3031 22

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