A Stock Has a Correlation with the Market of

question 68

Multiple Choice

A stock has a correlation with the market of .45. The standard deviation of the market is 21%, and the standard deviation of the stock is 35%. What is the stock's beta?

• A) 1
• B) .75
• C) .60
• D) .55

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Definitions:

Power Motivation

The drive to influence others or seek positions of authority and control, regarded as a fundamental aspect of human behavior.

McClelland's View

A psychological theory proposed by David McClelland that emphasizes the importance of three needs—achievement, affiliation, and power—in influencing human motivation.

Narcissism

A personality characteristic that involves pride, self-admiration, and a lack of empathy for others.

Idiographic Goal

Personal, unique goals that are specific to an individual's interests and desires, helping to shape their behavior and personality.