Calculating Beta: If the covariance of a stock is 23.16 percentage squared, the variance of the stock is 35 percentage squared and the variance of the market is 14 percentage squared, the beta of the stock is? If the correlation coefficient of the stock with the market is 0.7 and the standard deviation of that stock is .35 and the standard deviation of the market is .25, then the beta of the stock is..... Other Practice Problems What is the unique risky efficient portfolio? (Assumptions of CAPM) What will be the correlation coefficient of a portfolio with the market portfolio that is fully diversified? What is the type of risk that is not rewarded according to the CAPM. How would you use the Capital Asset Pricing Model to evaluate portfolio performance?