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The variance of return for stock ABC is .044. The variance of return for the market portfolio is .024. The covariance of return between stock
The variance of return for stock ABC is .044. The variance of return for the market portfolio is .024. The covariance of return between stock ABC and the market portfolio is .030. The risk free rate is .020. The expected return for stock ABC is .120. What is the beta for stock ABC?
The answer provided by my instructor is 1.25 but can someone provide me with a detailed explanation on how to answer such a question.
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