What is the beta of a stock A,given it has the covariance with the market of 0.0045,a standard deviation of 0.0657? The standard deviation of the market is 0.0469.
A)1.36
B)1.52
C)1.46
D)1.40

Question

Quizplus · Accepted Answer

Beta is calculated as the covariance of the stock with the market divided by the variance of the market. Variance of the market is the square of the standard deviation of the market. So, Beta = 0.0045 / (0.0469^2) = 1.46.

What Is the Beta of a Stock A,given It Has