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Suppose you toss a coin every day for the next 10 years, if tail the return is 1% if head the return is -1%. If
Suppose you toss a coin every day for the next 10 years, if tail the return is 1% if head the return is -1%. If you measure the beta of this asset using the S&P as the market index, which scenario has the highest probability to occur?
a. beta=0
b. -0.01 c. -1 d. beta=-1 e. beta=1
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