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A stock has a beta of 1.05, the expected return on the market is 10...

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A stock has a beta of 1.05, the expected return on the market is 10 percent, and the risk-free rate is 3.8 percent. a. Clearly explain what beta is. Given a beta of 1.05, what does this tell you regarding the volatility of the stock? (2 marks) b. What is the expected return on this stock? (1 mark)

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