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:

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