a coal producer, buys a large but privately held coal producer in Rhodesia. As a...
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a coal producer, buys a large but privately held coal producer in Rhodesia. As a result of the cross-border purchase of a private company, standard deviation of returns is reduced from 50% to 30%, and its correlation with the market falls from 0.95 to 0.69. Assume the market return and its standard deviation remain unchanged at 10% and 25%, respectively, and risk free rate is 3%. What is the market beta of the companies stock after the acquisition? (Please keep two decimal places).
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