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Suppose the market follows a single index model, where the index has expected return of 0.1 and risk-free rate is 0.04. For a stock with

Suppose the market follows a single index model, where the index has expected return of 0.1 and risk-free rate is 0.04. For a stock with expected return of 0.09 and abnormal return of 0.03, what is the beta of the stock?

0.333333333

3

1

0.833333333

0.6

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