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:

Potassium Chloride

A metal halide salt composed of potassium and chlorine, used in various applications including as a fertilizer, in medicine, and in food processing.

Lithium Bromide

A chemical compound used mainly in air conditioning systems as a desiccant due to its hygroscopic nature and in some pharmaceuticals; its formula is LiBr.

Electrolytes

Minerals in your body that have an electric charge, crucial for various bodily functions including nerve signaling and fluid balance.

Inorganic Compound

A chemical compound that lacks carbon-hydrogen bonds, typical of non-living chemical systems.