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You are given the following returns on "the market" and Stock F during the last...

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Finance

You are given the following returns on "the market" and Stock F during the last three years. We could calculate beta using data for Years 1 and 2 and then, after Year 3, calculate a new beta for Years 2 and 3. How different are those two betas, i.e., what's the value of beta 2 - beta 1? (Hint: You can find betas using the Rise-Over-Run method, or using your calculator's regression function.) Year Market Stock F 1 6.10% 17.00% 2 12.90% 3.70% 3 16.20% 21.71% Select the correct answer. a. 10.90 b. 10.98 c. 10.74 d. 10.82 e. 11.06

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