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Determine the Beta for Stock a Based on the Following

Question 109

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Determine the Beta for Stock A based on the following set of returns.Of course, the reliability of a Beta calculated with only four data points may be low.Interpret the Beta that you have calculated.
 Stock A Returns  Market Returns 6.0%5.0%15.0%12.5%−4.2%−3.5%9.0%7.5%\begin{array} { | c | c | } \hline \text { Stock A Returns } & \text { Market Returns } \\\hline 6.0 \% & 5.0 \% \\\hline 15.0 \% & 12.5 \% \\\hline - 4.2 \% & - 3.5 \% \\\hline 9.0 \% & 7.5 \% \\\hline\end{array}

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The four data points were selected to de...

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