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The beta coefficient for Stock C is b C = 0 . 4 and that for Stock D is b D = - 0 .

The beta coefficient for Stock C is bC=0.4 and that for Stock D is bD=-0.5.(Stock
D's beta is negative, indicating that its rate of return rises whenever returns on most
other stocks fall. There are very few negative-beta stocks, although collection agency
and gold mining stocks are sometimes cited as examples.)
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