Stock Y Has a Standard Deviation of 22 Percent and a Covariance

question 102

Multiple Choice

Stock Y has a standard deviation of 22 percent and a covariance with the market of 0.081.The expected return of the market is 14 percent with a standard deviation of 18 percent.The risk-free rate is 5.25 percent.What is the beta of Stock Y?

• A) 0.37
• B) 0.45
• C) 1.67
• D) 2.50

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Definitions:

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A qualitative research method involving direct, face-to-face, or virtual conversation to gather information or opinions.

Strategic Gains

Benefits achieved from implementing business strategies that improve a company's competitive position and overall performance.

Growth Phase

A stage in the product or business lifecycle characterized by rapid revenue and customer base expansion.

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Losses that are endured intentionally as part of a broader strategy aiming for long-term gains or market positioning.