The Beta of an Individual Security Is Calculated By

question 98

Multiple Choice

The beta of an individual 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)multiplying the variance of the market by the covariance of the security with the market.
• D)multiplying the variance of the market by the correlation of the security with the market.
• E)None of the above.

---

Definitions:

Molecules

Molecules are groups of atoms bonded together, representing the smallest fundamental unit of a chemical compound that can take part in a chemical reaction.

Structure

The organization and connections between different parts or elements within a complex structure.

Hydrogen Bonding

A weak type of chemical bond that is common in water and organic compounds, arising from the attractive force between a hydrogen atom covalently bonded to a very electronegative atom (such as oxygen or nitrogen) and another electronegative atom.

Dimethyl Ether

Dimethyl ether is a colorless gas used as an aerosol propellant and a refrigerant, with the chemical formula CH3OCH3.