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There are different ways of calculating the beta coefficient for a stock. Using the information given in the following table, calculate the beta coefficient of
There are different ways of calculating the beta coefficient for a stock. Using the information given in the following table, calculate the beta coefficient of Stock i: Data Stock i's standard deviation 49.00% Market's standard deviation 44.80% Correlation between Stock i and the market 0.91 Beta coefficient of Stock i: To calculate the beta of another company, using regression analysis, you get the value of R2 as 0.91. Based on your calculation, which of the following interpretations is true? O 9% of the variance in the company's returns can be explained by the market returns. O 91% of the variance in the company's returns can be explained by the market returns
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