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:

Pre-Contract Statements

Statements made by parties involved before a contract is finalized, which may influence the agreement or understanding of the contract.

Consideration

In contract law, the benefit or value that each party agrees to exchange as part of a contractual agreement, which is a requirement for a valid contract.

Assignee

A person to whom an assignment is made.

Assignor

The maker of an assignment.