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The risk-free rate is 7 percent, the expected return on the market is 10 percent, and the expected return on Security J is 13 percent.
The risk-free rate is 7 percent, the expected return on the market is 10 percent, and the expected return on Security J is 13 percent. What is the beta of Security J?
A) 0.5 B) 1.0
C) 1.5
D) 2.0
E) 2.5
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