Which of the Following Are Needed to Compute the Beta

question 12

Multiple Choice

Which of the following are needed to compute the beta of an individual security?
I. average return on the market for the period
II. standard deviation of the security and the market
III. returns on the security and the market for multiple time periods
IV. correlation of the security to the market

• A)I and III only
• B)I and IV only
• C)II and III only
• D)II and IV only
• E)I, II, and III only

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Definitions:

Preventive Maintenance

Routine maintenance and inspections to prevent potential failures or breakdowns of equipment.

Useful Life

The estimated period of time over which an asset is expected to be used before it is fully depreciated.

Selling Price

The amount a customer pays to purchase a product or service.

Value-based Pricing

Pricing strategy where the price is based on the perceived value of a product or service to the customer rather than the cost of production.