The Beta of a Security Is Calculated By

question 67

Multiple Choice

The beta of a security is calculated by:

• A) dividing the covariance of the security with the market by the variance of the market.
• B) dividing the correlation of the security with the market by the variance of the market.
• C) dividing the variance of the market by the covariance of the security with the market.
• D) dividing the variance of the market by the correlation of the security with the market.
• E) None of these.

---

Definitions:

Restricted Incoming

Describes any type of information, communication, or materials that are limited in access or entry.

Special Restricted

A term designated for areas, information, or access that is limited to certain authorized individuals or groups, often for security or privacy reasons.

Consequence Words

Words that express or indicate the outcome, result, or effect of an action or decision.

Back-to-Back Headings

Adjacent headings in a document without intervening text, often discouraged in formal writing for clarity’s sake.