Air Canada Stock Has a Standard Deviation of 10%,while the Market

question 35

Multiple Choice

Air Canada stock has a standard deviation of 10%,while the market index standard deviation is 7%.If the correlation between Air Canada and the market index is 0.85,what is the beta of Air Canada stock?

• A)0.60
• B)1.21
• C)1.43
• D)0.85
• E)1.0

---

Definitions:

Excitatory

Pertaining to or causing excitation, often used in the context of neuronal activity where excitatory signals lead to the activation or stimulation of a nerve cell.

Nerve Impulse

Electrical signal that conveys information along the length of a neuron.

Neuron Membrane

The lipid bilayer that encloses the cytoplasm of neurons, crucial for nerve impulse transmission.

Potassium Ions

Essential positive ions (K+) within cellular processes, crucial for nerve function, muscle contraction, and maintaining fluid and electrolyte balance.