Question: Consider the single factor model. The standard deviation of returns on a well-diversified portfolio is 22%. The standard deviation on the factor portfolio is 14%.

Consider the single factor model. The standard deviation of returns on a well-diversified portfolio is 22%. The standard deviation on the factor portfolio is 14%. The beta of the well-diversified portfolio is approximately

Question 6 options:

	1.25
	0.80
	1.57
	None of the other answers.
	1.13

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