Air Canada Stock Has a Standard Deviation of 25%,while the Market

question 78

Multiple Choice

Air Canada stock has a standard deviation of 25%,while the market index standard deviation is 12%.If the correlation between Air Canada and the market index is 0.33,what is the beta of Air Canada stock?

• A)2.08
• B)0.16
• C)0.69
• D)2.75
• E)1.32

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Definitions:

Psychological Dependence

A form of dependence characterized by a perceived need to use a substance for its mental effects, often leading to cravings and misuse.

Middle Adulthood

A stage of life typically characterized as occuring between the ages of 40 and 65, marked by personal, professional, and familial achievements and challenges.

Chronic Illnesses

Long-term health conditions that are persistent or otherwise have lasting effects on an individual's well-being, such as diabetes or heart disease.

Death Rate

The ratio of deaths in an area to the population of that area; expressed per 1000 per year.