Calculate the Consumption Beta for an Asset with a Standard $0.15$

question 33

Multiple Choice

Calculate the consumption beta for an asset with a standard deviation of 10%,where the variance of consumption growth is 10% and the covariance between the growth rate in consumption and the asset is 0.015.

• A) \( 0.15 \)
• B) \( 0.50 \)
• C) \( 0.75 \)
• D) \( 1.50 \)

---

Definitions:

Well-Known Business

A company or enterprise that is widely recognized and established within its industry or among the general public due to its history, branding, or achievements.

Button To Nowhere

A user interface element that does not perform any function, often resulting in user confusion or frustration.

Experiment

A procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Experimenting

The act of conducting a test or investigation to discover or demonstrate something unknown.