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The risk-free rate is 3.4 percent and the expected return on the market is 10.8 percent. Stock A has a beta of 1.18. For a
The risk-free rate is 3.4 percent and the expected return on the market is 10.8 percent. Stock A has a beta of 1.18. For a given year, stock A returned 13.6 percent while the market returned 11.8 percent. The systematic portion of the unexpected return was _____ percent and the unsystematic portion was _____ percent.
choices:
1.045; 0.207
1.145; 0.126
1.180; 0.288
1.344; 1.443
1.500; 1.449
PLEASE EXPLAIN AND SHOW WORK THANK YOU!
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