A stock has a standard deviation of 12.9% and a covariance with the market of .035. The market has a standard deviation of 9.93%. What is the beta of this stock?
A)3.284
B)3.550
C)3.764
D)3.978
E)4.075

Name: A stock has a standard deviation of 12.9% and a covariance with the market of .035. The market has a standard deviation of 9.93%. What is the beta of this stock? A)3.284 B)3.550 C)3.764 D)3.978 E)4.075
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Question

Quizplus · Accepted Answer

Beta = Covariance/(Market standard deviation)^2

Beta = 0.035/(0.0993^2)

Beta = 3.550

A Stock Has a Standard Deviation of 12