Question: The market expected return is 8% with a standard deviation of 18%. The risk free rate is 3.5%. Security XYZ has just paid a dividend

The market expected return is 8% with a standard deviation of 18%. The risk free rate is 3.5%. Security XYZ has just paid a dividend of $5 and has a current price of $80. What is the beta of Security XYZ if its dividend is expected to grow at 2% per year indefinitely?

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