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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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An investment analyst is calculating the beta of a portfolio of large-cap utility company stocks. The analyst determines that the correlation between the return of the portfolio and the return of its benchmark is 0.7, the volatility of portfolio returns is 6.5%, and the volatility of the benchmark returns is 5.0%. What is the beta of the portfolio with respect to its benchmark?

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