The Beta of a Security Is Calculated By

question 27

Multiple Choice

The beta of a security is calculated by:

• A) dividing the covariance of the security with the market by the variance of the market.
• B) dividing the correlation of the security with the market by the variance of the market.
• C) dividing the variance of the market by the covariance of the security with the market.
• D) dividing the variance of the market by the correlation of the security with the market.

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Definitions:

Newman Structure

A way to represent the spatial arrangement of atoms around a carbon-carbon single bond, illustrating staggered or eclipsed conformations.

Line-Angle Structure

A simplified drawing of a molecule where lines represent bonds and vertices represent carbon atoms, excluding hydrogen atoms for clarity.

Structure

The arrangement of and relations between the parts or elements of something complex.

Conformation

The spatial arrangement of atoms in a molecule that can be changed by rotating single bonds without breaking any chemical bonds.