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

• A)I and III only
• B)I and IV only
• C)II and III only
• D)II and IV only
• E)I, II, and III only

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Definitions:

Conversion Reaction

A psychological response where emotional stress or conflict is converted into physical symptoms.

Simple Phobias

Excessive and irrational fears of specific objects, activities, or situations, that can lead to severe anxiety when encountered.

Primary

Describes something that is of first importance or serves as the main focus.

Social

Relating to the organization and functioning of human society or the interactions between individuals.