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The expected return on the market is 0.18 with a standard deviation of 0.30. The return on the riskfree asset is 10%. An Asset A
The expected return on the market is 0.18 with a standard deviation of 0.30. The return on the riskfree asset is 10%. An Asset A has a standard deviation of 0.70 and a correlation of its expected return with the expected return on the market of 0.40.
The Beta of asset A is:
a.0.93
b.0.42
c.0.8
d.1.2
e.0.32
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