The Beta of a Stock a Is 1

question 18

Multiple Choice

The beta of a stock A is 1.32.If the standard deviation of the market is 0.0443,and stock A's covariance with the market is 0.0054.What is Stock A's standard deviation?

• A)0.0543
• B)0.0765
• C)1.0037
• D)0.0924

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Definitions:

Journalize Entry

The act of recording a transaction in the accounting journal as part of the bookkeeping process.

Accounts Receivable Turnover

A financial metric indicating how often a company collects its average accounts receivable within a period, showing its efficiency in credit and collections.

Days' Sales in Receivables

A financial ratio that measures how well a company is managing its accounts receivable by calculating the average number of days it takes to collect payments from customers.

Fiscal Year

A one-year period used for financial reporting and budgeting by businesses and governments, which may not align with the calendar year.