The Beta of a Security Is Calculated by Dividing The

question 100

Multiple Choice

The beta of a security is calculated by dividing the:

• A)covariance of the security return with the market return by the variance of the market.
• B)correlation of the security return with the market return by the variance of the market.
• C)variance of the market by the covariance of the security return with the market return.
• D)variance of the market return by the correlation of the security return with the market return.
• E)covariance of the security return with the market return by the correlation of the security and market returns.

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Definitions:

Organismic Respiration

The process by which an organism takes in oxygen and expels carbon dioxide, involving the oxidation of organic molecules to produce energy.

Diffusion

The movement of molecules or particles from an area of higher concentration to one of lower concentration until equilibrium is reached.

Aerobic Cellular Respiration

Aerobic cellular respiration is a metabolic process where cells convert biochemical energy from nutrients into adenosine triphosphate (ATP), using oxygen as the electron acceptor.

Catabolism

The aspect of metabolism in which complex substances are broken down to form simpler substances; catabolic reactions are particularly important in releasing chemical energy stored by the cell. Compare with anabolism.