The Average Annual Return of Bram Corporation Is 21%, with a Standard

question 32

Multiple Choice

The average annual return of Bram Corporation is 21%, with a standard deviation of 12.0%. The average annual return of the market portfolio is 12.5%, with a standard deviation of 4%.
The covariance of the returns is 28.8%%. What is Bram's market beta?

• A)0.1
• B)0.6
• C)1.7
• D)1.8

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Definitions:

Factory Departments

Specific areas within a factory, each dedicated to a particular stage of the manufacturing process or type of task.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Factory Equipment

Assets such as machinery and tools that are used in the production process within a manufacturing or production facility.

Factory Overhead

The indirect costs associated with manufacturing, including utilities, maintenance, and management salaries, but not including raw materials or direct labor.