A Stock Has a Standard Deviation of 18

question 66

Multiple Choice

A stock has a standard deviation of 18.0 percent and a covariance with the market of 0.02.The market has a standard deviation of 14.3 percent.What is the beta of this stock?

• A) 0.294
• B) 0.572
• C) 0.764
• D) 0.978
• E) 1.075

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Definitions:

NaBH4

Sodium borohydride, a reducing agent commonly used in the reduction of ketones and aldehydes to alcohols.

HNO3

Nitric acid, a highly corrosive and toxic strong acid used in the manufacture of fertilizers and explosives.

D-Tagatose

A ketohexose sugar related to fructose that has potential health benefits and is used as a low-calorie sweetener.

Keto-Enol Tautomerization

A chemical equilibrium between a ketone and its corresponding enol (a compound with a double bond and a hydroxyl group connected to the same carbon), highlighting the mobility of hydrogen and electrons.