The Correlation Coefficient Between a Stock and the Market Portfolio

question 47

Multiple Choice

The correlation coefficient between a stock and the market portfolio is +0.6. The standard deviation of return of the stock is 30 percent and that of the market portfolio is 20 percent. Calculate the beta of the stock.

• A)1.1
• B)1.0
• C)0.9
• D)0.6

---

Definitions:

Find Button

A feature in software that allows users to search for specific text, files, or information quickly.

HOME Tab

The primary or default tab in many software applications, offering access to the main functions and settings.

Filter By Query

A feature that allows users to refine search results or dataset visibility based on specified criteria or commands.

Multiple Criteria

The use of more than one condition or requirement in decision-making processes or in functions such as searches or filters.