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Unimark Inc. stock is expected to earn 15 percent in a boom economy and 7 percent in a normal economy. There is a 35 percent
Unimark Inc. stock is expected to earn 15 percent in a boom economy and 7 percent in a normal economy. There is a 35 percent chance the economy will be boom and 65 percent chance the economy will be normal. Based on the CAPM and assuming an expected return on the market of 13% and a risk-free rate of 5%, the beta of Unimark shares is closest to:
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