If Asset X Has a Standard Deviation of 10 Percent

question 16

Multiple Choice

If asset x has a standard deviation of 10 percent, and the market portfolio has a standard deviation of 20 percent, and the correlation of their returns is .5, what is the beta?

• A)1.0
• B).5
• C).25
• D)0

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Definitions:

Growth Stage

A phase in the lifecycle of a business or product characterized by rapid revenue and customer base expansion, requiring careful management to sustain growth.

Sales Climb

An increase in the number of products or services sold over a particular period of time.

Direct Distribution

A method where products are sold and delivered to consumers directly from the producer, bypassing intermediaries.

Marketing Intermediaries

are third-party firms or individuals that act as middlemen in the distribution process, connecting producers with consumers.