The Correlation Between a Stock and the Market Is 0

question 14

Multiple Choice

The correlation between a stock and the market is 0.48. The standard deviation of the stock is 41 percent, and the standard deviation of the market is 23 percent. What is the beta of the stock?

• A) 0.27
• B) 0.58
• C) 0.86
• D) 0.71
• E) 0.49

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Definitions:

Activation-Synthesis Hypothesis

Premise that states that dreams are created by the higher centers of the cortex to explain the activation by the brain stem of cortical cells during REM sleep periods.

Sleep Deprivation

The condition of not having enough sleep, which can lead to a range of psychological and physical problems, including impaired judgment, mood swings, and reduced cognitive performance.

Memory

The cognitive process that involves encoding, storing, and retrieving information.

Stimulants

Substances that increase nervous system activity, resulting in enhanced alertness, attention, and energy, which can include drugs like caffeine, nicotine, and amphetamines.