What Is the Beta of a Security Where the Expected

question 11

Multiple Choice

What is the beta of a security where the expected return is double that of the stock market, there is no correlation coefficient relative to the U.S.stock market, and the standard deviation of the stock market is .18?

• A)0.00
• B)1.00
• C)1.25
• D)2.00

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Definitions:

Prototype

An original model or first form of something from which other forms are copied or developed.

Exemplar

An individual instance or example that is representative of a category or concept, often used in models of categorization in cognitive psychology.

Schema

A cognitive framework or concept that organizes and interprets information in the mind, helping to understand and predict the world.