Given a Correlation Coefficient of 0 $0.588$ B) $0.691$

question 7

Multiple Choice

Given a correlation coefficient of 0.85 between portfolio A and the market portfolio,a standard deviation of portfolio A of 26% and a standard deviation of the market portfolio of 18%,what is the portfolio beta?

• A) \( 0.588 \)
• B) \( 0.691 \)
• C) \( 0.743 \)
• D) \( 1.230 \)

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Competitive Industry

An industry characterized by many firms producing similar goods or services, where no single firm has a dominant market share.

Market Price

The existing rate at which an asset or service is available for buying or selling in the market.

Demand Curve

A visual diagram showing the correlation between an item's price and the amount of it that consumers want to buy.