Find the beta of security abcy standard normal random
Find the beta of Security ABC.
E[r] = 0.02 + 0.5Rm+ 0.2y
Where:
E[r] = ABC Expected Return
Market Return (Rm) = 0.20
Market STDEV = 0.25
y = standard normal random variable and uncorrelated with Rm. (This is all the info given)
Expected delivery within 24 Hours
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