A Share Has a Correlation with the Market of 0

question 52

Multiple Choice

A share has a correlation with the market of 0.45. The standard deviation of the market is 21% and the standard deviation of the share is 35%. What is the share's beta?

• A)1.00
• B)0.75
• C)0.60
• D)0.55

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Definitions:

Systematically

Done or applied in a methodical and organized manner.

Cognitive Development

The construction of thought processes, including remembering, problem-solving, and decision-making, from childhood through adolescence to adulthood.

Sentiments

Complex emotions or feelings that involve judgments and evaluations of a particular situation or experience.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.