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:

Anticoagulant

A substance that prevents blood from clotting, used in medical treatment to prevent blood clots from forming or growing larger.

Plasma

The liquid component of blood in which blood cells are suspended, consisting mainly of water, proteins, and dissolved substances.

Palpation

The technique of examination using the fingers or hands.

Tourniquet

A tourniquet is a device used to apply pressure to a limb or extremity to restrict blood flow, often in medical emergencies to control bleeding.