Question: 4 / 8 125% + cquilibrium expected return on securities A and B? b) Arvind stock has the beta of 1.50. Over six years, the

 4 / 8 125% + cquilibrium expected return on securities A

4 / 8 125% + cquilibrium expected return on securities A and B? b) Arvind stock has the beta of 1.50. Over six years, the following returns were produced by Arvind stock and market index. Assuming market model intercept term of 0 percent, calculate the standard deviation of the market model return error term over this period. Year 1 2 **3 4 5 6 Return 9.8% 29.5% 13.3% -6.1% -3.4% 16.5% Market Index 6.0% 25.0% 10.2% -4.0% -2.5% 12.5% GOOD LUCK

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