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Based on the Following Information, Make an Estimate of the Stock's

question 30

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Based on the following information, make an estimate of the stock's Beta: Month 1 = Stock + 1.5%, Market + 1.1%; Month 2 = Stock + 2.0%, Market + 1.4%; Month 3 = Stock -2.5%, Market -2.0%.


Definitions:

Market Rate

The market rate, often referred to as the going rate, is the standard or average interest rate, wage, or price charged or paid for a specific good, service, or asset in a specific market.

Equity Securities

Financial instruments that represent ownership interest in a company or corporation, such as common stock.

Cumulative Voting

Cumulative voting is a voting system that allows shareholders to allocate their votes to one or several candidates in a way that can increase minority shareholder representation on the board of directors.

Shareholder

An individual or organization that owns shares in a corporation, thus holding a portion of the company's stock.

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