Calculate the Beta for an Asset with a Variance of 10%,where

question 22

Multiple Choice

Calculate the beta for an asset with a variance of 10%,where the market has a variance of 15% and a covariance with the asset of 20%.

• A) \( 0.15 \)
• B) \( 1.33 \)
• C) \( 0.75 \)
• D) \( 1.50 \)

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Definitions:

Subliminally

In a manner that affects someone's mind without them being fully aware of it; influencing subconscious perception.

Conscious Awareness

The state of being aware of one's surroundings, actions, thoughts, or feelings.

Recognizing

The cognitive process of identifying previously encountered information, objects, or situations.

Parallel Processing

The brain's capacity to process multiple components of information simultaneously.