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:

Time Bias

A predisposition or inclination that affects perception or decision-making based on the time frame considered, often undervaluing long-term impacts.

Space Bias

Space bias describes the tendency of communication technologies to facilitate connections across wide distances more effectively than maintaining local, situated interactions.

Social Networking Sites

Platforms on the internet where individuals can connect, share, and communicate with each other.

Digital Sociality

The way social relationships and interactions are conducted and facilitated through digital platforms and technologies.