The Formula for Beta Is:
A) $\beta _ { i } = \frac { \bar { R } _ { i } - R _ { f } } { \left( \bar { R } _ { m } - R _ { f } \right) }$

question 21

Multiple Choice

The formula for beta is:

• A) \(\beta _ { i } = \frac { \bar { R } _ { i } - R _ { f } } { \left( \bar { R } _ { m } - R _ { f } \right) }\)
• B) \(\beta _ { i } = \frac { \rho _ { R _ { i } , R _ { M S } } } { \sigma _ { R _ { M } } ^ { 2 } }\)
• C) \(\beta _ { i } = \frac { \operatorname { Cov } \left( R _ { i } , R _ { M } \right) } { \operatorname { Var } \left( R _ { M } \right) }\)
• D) \(\beta _ { i } = \frac { \operatorname { Corr } \left( R _ { i } , R _ { M } \right) } { \operatorname { Var } \left( R _ { M } \right) }\)

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