Stock Y Has a Standard Deviation of 22% and a Covariance

question 61

Multiple Choice

Stock Y has a standard deviation of 22% and a covariance with the market of 0.081.The expected return of the market is 14% with a standard deviation of 18%.The risk-free rate is 5.25%.What is the beta of Stock Y?

• A)0.37
• B)0.45
• C)1.67
• D)2.50

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