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) \( 0.28 \)