The Market Risk,beta,of a Security Is Equal to

question 21

Multiple Choice

The market risk,beta,of a security is equal to

• A) the covariance between the security's return and the market return divided by the variance of the market's returns.
• B) the covariance between the security and market returns divided by the standard deviation of the market's returns.
• C) the variance of the security's returns divided by the covariance between the security and market returns.
• D) the variance of the security's returns divided by the variance of the market's returns.
• E) none of these.

---

Definitions:

Unconscious Wishes

Desires or wants that reside within the unconscious mind, often influencing behavior and thoughts without an individual's conscious awareness.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Biological Urges

Fundamental instinctive impulses that drive behaviors necessary for survival, such as hunger, thirst, and reproduction.

Narcolepsy

A sleep disorder characterized by excessive sleepiness, sleep paralysis, hallucinations, and in some cases episodes of cataplexy (partial or total loss of muscle control).