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Which of the Following Are Needed to Compute the Beta

question 12

Multiple Choice

Which of the following are needed to compute the beta of an individual security?
I. average return on the market for the period
II. standard deviation of the security and the market
III. returns on the security and the market for multiple time periods
IV. correlation of the security to the market


Definitions:

Aqueous Solution

A solution in which the solvent is water, commonly used in a wide range of chemical and biological processes.

Solute

A substance that is dissolved in another substance (solvent), forming a solution, which can be a solid, liquid, or gas.

Solvent-water

A substance, in which water acts as the dissolving agent or medium, primarily for solutes.

Semipermeable Membrane

A type of barrier that allows some particles to pass through while preventing others, often used in the context of biological membranes or filtration systems.

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