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The following table shows the returns on the market portfolio and on Stock X in three different scenarios, and the probability of each. The risk-free

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The following table shows the returns on the market portfolio and on Stock X in three different scenarios, and the probability of each. The risk-free rate is 2%. State H M L Probability 1/3 1/2 1/6 Market +25% +10% -20% +15% +13% - 21% a) Calculate the beta and alpha of Stock X. b) What portion of Stock X's volatility is due to idiosyncratic risk

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