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volatility of 90% and expected return of 14% and a volatility of 15%. The risk- ABC Internet stock has a a beta of 3. The

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volatility of 90% and expected return of 14% and a volatility of 15%. The risk- ABC Internet stock has a a beta of 3. The market portfolio has an free rate is 7%. What is the equilibrium expected return on ABC stock? What is the proportion of ABC Internet's variance which is diversified away in the market portfolio

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