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The characteristic line of a stock has the formula y = 1.221x + 0.214. Which of the following is/are correct? Select all that apply. he

The characteristic line of a stock has the formula y = 1.221x + 0.214. Which of the following is/are correct? Select all that apply.

he stock's returns must be positively correlated with market returns.

The stock's beta is 1.221.

The stock's beta is 0.214.

According to CAPM, this stock should have a lower expected return than the market.

The stock has less systematic risk than the average stock.

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