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The ABC Corp's common stock has a rate of return of 7.8%. Assume the risk-free rate is 3.5%, the expected market return is 6.6%, and
The ABC Corp's common stock has a rate of return of 7.8%. Assume the risk-free rate is 3.5%, the expected market return is 6.6%, and no unsystematic risk affected ABC's return. What is the ABC's beta?
a. 1.39
b. 1.46
c. 4.3
d. 3.10
e. Impossible to calculate without the inflation rate.
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