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Suppose that the interest rate is 4% and the net return of Federal Marshmallow (FM) tends to be 1.2 times that of the market, on

Suppose that the interest rate is 4% and the net return of Federal Marshmallow (FM) tends to be 1.2 times that of the market, on average. Can you deduce the Beta of FM?

A. No, there is not enough information given

B. Yes, it is 1.2

C. Yes, it is 1.13

D. Yes, it is 0.87

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