NM Mining Company Has a Standard Deviation on Its Common

question 50

Multiple Choice

NM Mining Company has a standard deviation on its common stock of 60 percent and a correlation with market returns of 0.65. The market's standard deviation and expected return are 15 percent and 14 percent, respectively, and the risk-free rate of return is 8 percent. What is NM Mining's beta?

• A)3.5
• B)2.6
• C)1.0
• D)0.06

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