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Tiffany Smith, FRM, has developed the following data on stock X and the market: Return on the market 12% Covariance between the return on stock
Tiffany Smith, FRM, has developed the following data on stock X and the market:
Return on the market | 12% |
Covariance between the return on stock X and the return on the market | 0.0288 |
Correlation coefficient of the return on stock X and the return on the market | 0.8 |
Standard deviation of the return on the market | 0.25 |
Standard deviation of the return on stock X | 0.18 |
Based on these data, the beta of stock x is closest to:
A). 0.46
B). 0.58
C). 0.66
D. 0.40
E). 0.72
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