An Asset Has a Standard Deviation of 30% and a Correlation

question 31

Multiple Choice

An asset has a standard deviation of 30% and a correlation with the market portfolio of 0.60.If the market has a standard deviation of 30%,how much lower is the beta of the asset relative to the market?

• A) \( 0.05 \)
• B) \( 0.10 \)
• C) \( 0.18 \)
• D) \( 0.40 \)

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