The Common Stock of Blasco Books Has a Standard Deviation

question 25

Multiple Choice

The common stock of Blasco Books has a standard deviation of 13.3% as compared to the market standard deviation of 11.3%. The covariance of this stock with the market is .0193. What is the beta of Blasco Books' stock?

• A)1.03
• B)1.20
• C)1.28
• D)1.35
• E)1.51

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Definitions:

Expected Frequency

The number of occurrences predicted in a category of a contingency table based on the assumption of a particular hypothesis, commonly used in chi-squared tests.

Expected Frequency

The number of occurrences of an event expected in a study based on a probability model.

Sample Size

The number of observations or subjects used in a study or experiment, which represents a portion of the population being studied.

Test Statistic

A value calculated from sample data used to determine whether to reject the null hypothesis in a statistical test.