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The correlation coefficient between Asset Y and the Market is E(r) Std Dev Beta Risk-free 2% Asset X 10% 20% 0.5 Asset Y 6% 30%
The correlation coefficient between Asset Y and the Market is E(r) Std Dev Beta Risk-free 2% Asset X 10% 20% 0.5 Asset Y 6% 30% Market 8% 20% O 3/4 O 1/3 0 2/3
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