-What Is the Beta of Stock B?
A) 0

question 39

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 B?

• A) 0.71
• B) 0.89
• C) 0.78
• D) 0.84
• E) 0.93

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Definitions:

Glucocorticoid Hormone

A type of steroid hormone involved in the regulation of metabolism, immune response, and stress responses.

Cortisol

A collective term for the glucocorticoid hormones, which are released into the bloodstream by the adrenal cortex as a response to physical or psychological stress.

Causal Link

A connection between two events or states, where one is the cause of the other, indicating a direct relationship that results in an effect.

Biological Processes

Biological processes refer to the complex interactions and activities within living organisms that result in growth, reproduction, and maintenance of life.