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Suppose risk-free rate of return = 2%, market return = 9%, and Stock Bs return = 15%. Calcuate Stock Bs beta. If Stock Bs beta

  1. Suppose risk-free rate of return = 2%, market return = 9%, and Stock Bs return = 15%.
  1. Calcuate Stock Bs beta.
  2. If Stock Bs beta were 0.8, what would be its new rate of return?

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