The Market Has a Standard Deviation of 10

question 15

Multiple Choice

The market has a standard deviation of 10.8% while a risky security has a standard deviation of 22.5%. The covariance of the stock with the market is .0149. What is the beta of the stock?

• A)1.09
• B)1.11
• C)1.15
• D)1.19
• E)1.28

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Definitions:

Reality Orientation

Therapeutic modality for restoring an individual's sense of the present.

Psychosocial Change

Adjustments in a person's psychological and social situation, often resulting from or leading to altered interactions with others, self-perception, and coping strategies.

Social Isolation

A state in which an individual lacks a sense of belonging socially, lacks engagement with others, and has a minimal number of social contacts, often leading to negative health outcomes.

Reminiscence

Recalling the past to assign new meaning to past experiences.