Air Canada Stock Has a Standard Deviation of 10%,while the Market

question 35

Multiple Choice

Air Canada stock has a standard deviation of 10%,while the market index standard deviation is 7%.If the correlation between Air Canada and the market index is 0.85,what is the beta of Air Canada stock?

• A)0.60
• B)1.21
• C)1.43
• D)0.85
• E)1.0

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Definitions:

Fewer Mistakes

A term that refers to making less errors or inaccuracies in a process or activity.

Inspired

A state of being mentally stimulated to do or feel something, especially to do something creative.

Cognitive Tasks

Tasks that require mental processes such as perception, memory, problem solving, and decision-making.

Intelligence

All-purpose ability to do well on cognitive tasks, to solve problems, and to learn from experience.