The Beta of a Security Is Calculated By

question 75

Multiple Choice

The beta of a security is calculated by:

• A)dividing the variance of the market by the covariance of the security with the market.
• B)dividing the correlation of the security with the market by the variance of the market.
• C)dividing the covariance of the security with the market by the variance of the market.
• D)dividing the variance of the market by the correlation of the security with the market.
• E)None of the above.

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Definitions:

Temperature

A measure of the average kinetic energy of the particles in a system, which determines how hot or cold something feels.

Deformation

involves the alteration of the shape or size of rocks and geological structures due to stress and pressure over time.

Subsidence

the gradual sinking of land or a structure, often due to natural underground processes.

Uplift

The vertical elevation of the Earth's surface due to natural causes, such as tectonic movements or volcanic activity.