An Asset in the Australian Market Has a Consumption Beta $0.0010$

question 40

Multiple Choice

An asset in the Australian market has a consumption beta of 0.5.If the variance of the asset is 0.024 and the variance of the growth rate in consumption is 0.035,what is the asset's covariance with the growth rate in consumption?

• A) \( 0.0010 \)
• B) \( 0.0120 \)
• C) \( 0.0175 \)
• D) \( 2.0830 \)

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Definitions:

Y-Linked

Gene located on a Y chromosome.

Genotype

The genetic makeup of an organism, consisting of all the genes and alleles present in its DNA.

Genetic Constitution

The fundamental DNA sequence of an organism determining inherited characteristics.

Acrosomal Reaction

A process in which the enzymes of the sperm's acrosome are released to penetrate an egg and facilitate fertilization.