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Security X has a beta of 2. Assume the variance of market excess return is...

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Finance

Security X has a beta of 2. Assume the variance of market excess return is 0.04, what is the systematic risk (measured by variance) of X?

Group of answer choices

0.04

0.08

0.16

Cannot be determined because alpha is not known.

Answer & Explanation Solved by verified expert
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