The Beta of a Stock or Portfolio Is The

question 4

Multiple Choice

The beta of a stock or portfolio is the:

• A)ratio of its covariance with the returns of the tangency portfolio to the market risk premium of the market portfolio.
• B)ratio of its covariance with the returns of the tangency portfolio to the standard deviation of the tangency portfolio.
• C)ratio of its covariance with the returns of the tangency portfolio to the variance of the tangency portfolio.
• D)ratio of its correlation with the returns of the tangency portfolio to the standard deviation of the tangency portfolio.

---

Definitions:

Business Ethics

Principles and standards that guide behavior in the world of business, addressing issues like corporate governance, insider trading, bribery, discrimination, and social responsibility.

Anne Mulcahy

Former CEO of Xerox Corporation, known for her role in the company's turnaround and her leadership qualities.

Xerox

A multinational corporation known for its photocopiers and printing technology, often used synonymously with photocopying.

Instrumental Stage

A developmental phase where an individual learns to engage in activities or behaviors for the sake of achieving a goal or obtaining a reward.