Question
The correlation coefficient between Stock X and the market portfolio is 0.70. The variance of returns for the market portfolio is 0.0625 and the variance
The correlation coefficient between Stock X and the market portfolio is 0.70. The variance of returns for the market portfolio is 0.0625 and the variance of returns for Stock X is 0.0900. Note that these variances are given in decimal form, not as percentages.
What is the beta coefficient for Stock X?
a. 0.84
b. 1.00
c. 1.20
d. 1.44
e. None of the above
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Business Analysis And Valuation Using Financial Statements
Authors: Krishna G Palepu, Paul M Healy
4th Edition
032430286X, 9780324302868
