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Suppose the market follows a single index model, where the index has standard deviation of 0.25. For a stock with standard deviation due to firm-specific

Suppose the market follows a single index model, where the index has standard deviation of 0.25. For a stock with standard deviation due to firm-specific risk of 0.1 and standard deviation of 0.3, what is the beta of the stock?

		0.2828
		1.2800
		1.1314
		0.8944
		0.8000

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