A Stock Has a Standard Deviation of 25

question 30

Multiple Choice

A stock has a standard deviation of 25.4 percent and a covariance with the market of .0160.The market has a standard deviation of 12.2 percent.What is the beta of this stock?

• A).294
• B).572
• C).926
• D).973
• E)1.075

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Definitions:

Critical Thinking

The ability to objectively analyze and evaluate an issue or situation to form a judgement, by questioning assumptions and identifying biases.

Social Responsibility

Social Responsibility involves businesses and individuals acting in ways that benefit society at large, beyond their own interests or profits.

Business

The organized efforts and activities of individuals to produce and sell goods and services for profit.

External Force

Factors outside an organization that can affect its performance or operations, such as market trends, regulatory changes, or economic conditions.