An Asset Has a Standard Deviation of 5% and a Correlation

question 20

Multiple Choice

An asset has a standard deviation of 5% and a correlation with the market portfolio of 0.70.If the market has a standard deviation of 28%,what is the beta of the asset?

• A) \( 0.13 \)
• B) \( 0.31 \)
• C) \( 0.60 \)
• D) \( 0.68 \)

---

Definitions:

Hypothalamus

A region of the brain responsible for producing hormones that regulate vital bodily functions, including temperature, hunger, moods, and the sleep cycle.

Hypertension

A chronic medical condition characterized by elevated blood pressure levels in the arteries.

Prehypertension

A condition where blood pressure is higher than normal, but not high enough to be classified as hypertension.

Orthostatic Hypotension

A form of low blood pressure that happens when standing up from sitting or lying down, leading to dizziness or fainting.