An Asset Has a Standard Deviation of 15% and a Correlation

question 38

Multiple Choice

An asset has a standard deviation of 15% and a correlation with the market portfolio of 0.46.If the market has a standard deviation of 25%,what is the beta of the asset?

• A) \( 0.25 \)
• B) \( 0.31 \)
• C) \( 0.27 \)
• D) \( 0.28 \)

---

Definitions:

Centromere

Constriction where sister chromatids of a chromosome are held together.

Cytokinesis

Cytokinesis is the process during cell division where the cytoplasm of a parental cell is divided into two daughter cells.

Microtubules

Cylindrical structures found in cells that are involved in maintaining cell shape, enabling cell movement, and facilitating cell division.

Centrioles

Cylindrical cell structures involved in the process of cell division and in the formation of the cell’s cytoskeleton.