Question
The correlation coefficient between a stock's return and broad market index returns is 0.60. The stock has a standard deviation of 40%. The market index
The correlation coefficient between a stock's return and broad market index returns is 0.60. The stock has a standard deviation of 40%. The market index has a standard deviation of 20%. Calculate the beta coefficient.
Multiple Choice
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0.3
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0.6
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0.9
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1.2
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1.5
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
