During the dot$-$com bubble, a tech company's stock showed an annual standard deviation of returns of $0\mathrm{.}22.$ Assume the market index had a standard deviation of $0\mathrm{.}2$ during the same period. The correlation coefficient between the company's stock and the market index was $0\mathrm{.}8.$ Calculate the beta of the company's stock.

Note: Remember what we learned in previous chapters. Formulas are given below. Reflect on how a "high beta" is indicative of higher risk in a bubble market.

Solution Concept:

Beta $=$ Covariance$($stock$,$ market$)\frac{?}{?}$ Variance$($market$).$

Also, Covariance $(A,B)=SD(A)*SD(B).$Correlation $(A,B)$ where $SD$ is standard deviation.

Give your answer in two decimals.

Answer: