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Stock Y Has a Standard Deviation of 22% and a Covariance

Question 75

Multiple Choice

Stock Y has a standard deviation of 22% and a covariance with the market of 0.081.The expected return of the market is 14% with a standard deviation of 18%.The risk-free rate is 5.25%.What is the beta of Stock Y?


A) 0.37
B) 0.45
C) 1.67
D) 2.50

Correct Answer:

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