The Market Risk, Beta, of a Security Is Equal to

question 21

Multiple Choice

The market risk, beta, of a security is equal to

• A) the covariance between the security's return and the market return divided by the variance of the market's returns.
• B) the covariance between the security and market returns divided by the standard deviation of the market's returns.
• C) the variance of the security's returns divided by the covariance between the security and market returns.
• D) the variance of the security's returns divided by the variance of the market's returns.

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