The Beta of a Security Is Calculated As: (________ of a Security's

question 7

Multiple Choice

The beta of a security is calculated as: (________ of a security's return with the return on the market portfolio/________) .

• A)Variance; Covariance of the market return
• B)Covariance; Variance of the market return
• C)Covariance; Standard deviation of the market return
• D)Variance; Covariance of the security return
• E)Covariance; Variance of the security return

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Definitions:

Signal Detection

A theory and method for quantifying the ability to differentiate between information-bearing patterns and random patterns that distract from the information.

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain, facilitating the sense of sight.

Blind Spot

The area in the visual field that lacks detection by the retina due to the absence of photoreceptor cells where the optic nerve exits the eye.

Retina

The thin inner surface of the back of the eyeball; this surface contains the sensory receptors.