Security a Has a Beta of

question 41

Multiple Choice

Security A has a beta of .9 and a standard deviation of its error term of 8%. If the standard deviation of the market is 10%, the total variance for Security A is

• A) 17.2.
• B) 73.
• C) 145.
• D) 154.

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Definitions:

Fair Adjustment

An equitable modification or change made to correct or improve a situation, ensuring fairness to all parties involved.

Professional Tone

Refers to the formal or business-like language used in corporate or professional communication.

Indirect Approach

A communication strategy where the main point or message is not presented first but instead is built up to through explanations, background information, or related details.

Pelvic Cavity

The body cavity located within the pelvis, housing organs such as the bladder, reproductive organs, and rectum.