The Correlation Coefficient Between Stock B and the Market Portfolio

question 24

Multiple Choice

The correlation coefficient between stock B and the market portfolio is 0.8. The standard deviation of the stock B is 35% and that of the market is 20%. Calculate the beta of the stock.

• A) 1.0
• B) 1.4
• C) 0.8
• D) 0.7

---

Definitions:

Madrid Protocol Initiative

An international treaty designed to simplify the process of registering trademarks in multiple countries through one application process.

Triple Bottom Line

An accounting framework that incorporates three parts of sustainability: social, environmental, and financial performance.

Sustainable Development

Conducting business in a way that protects the natural environment while making economic progress.

Social Audits

Evaluations of an organization's social impact, policies, and practices, often concerning its contributions to social responsibility and ethical standards.