A Risky Security Has a Variance of

question 59

Multiple Choice

A risky security has a variance of .036190 and a covariance with the market of .0222.The variance of the market is .01975.What is the correlation of the risky security to the market?

• A) 0.51
• B) 0.65
• C) 0.72
• D) 0.83
• E) 0.85

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Definitions:

Catharsis

A process of releasing and providing relief from strong or repressed emotions, often through art, dialogue, or experience.

Frustration

A feeling of irritation or distress experienced when one's needs, desires, or expectations are thwarted or unmet.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.

Behavioral Disengagement

A coping strategy involving reduction of effort or withdrawal from a task or situation.