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You have developed the following data for the three states of the economy, the returns on the market, and the returns on the security j.

You have developed the following data for the three states of the economy, the returns on the market, and the returns on the security j. Find the beta of security j.

State of economy Probability Return on market Return on j

Good 0.2 0.15 0.12

Fair 0.4 0.10 0.11

Poor 0.4 0.05 0.00

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