The Covariance of a Particular Stock Within a Portfolio Is

question 79

Multiple Choice

The covariance of a particular stock within a portfolio is 0.35.The variance of the stock is 0.42.Calculate the stock's Beta.

• A)0.833
• B)1.20
• C)1.77
• D)1.50

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Definitions:

Gross Profit Rate

A financial metric that shows the proportion of money left from revenues after accounting for the cost of goods sold.

Rate of Return on Total Assets

A financial ratio that measures the efficiency of a company's use of its assets in generating profit, calculated by dividing net income by total assets.

Rate of Return on Common Stockholders' Equity

A measure of the profitability relative to the shareholders' equity, demonstrating how efficiently equity is used to generate profits.