-What Is the Beta of Stock A?
A) 1

question 43

Multiple Choice

$\begin{array}{llcc} \text {Expected return on the market } &13\% \\ \text { Standard deviation of the market } &21\%\\ \text { Risk-free rate} &5.5\%\\\text { Correlation coefficient between }&\\\text { Stock A and the market } & 0.65 \\\text { Stock B and the market } & 0.28 \\\text { Standard deviation of Stock A } & 64 \% \\\text { Standard deviation of Stock B } & 53 \%\end{array}$


-What is the beta of Stock A?

• A) 1.47
• B) 1.98
• C) 1.51
• D) 1.69
• E) 1.82

---

Definitions:

Crude Quantity Theory

A simplified version of the quantity theory of money suggesting that an increase in money supply leads to a proportional increase in prices.

M

A symbol often representing money supply in economic discussions, including various measures like M1, M2, and M3.

Q

Quantity, frequently used in economic equations and discussions to denote the amount of goods produced or consumed.

PQ

The product of price (P) and quantity (Q), often used in economics to calculate total revenue or expenditure.