Which of the following describes how to calculate Beta using the equation method?

A.

A securitys Beta is equal to the correlation divided by the ratio of the standard deviations

B.

A securitys Beta is equal to the correlation multiplied by the ratio of the standard deviations

C.

A securitys Beta is equal to the covariance multiplied by the ratio of the standard deviations

D.

A securitys Beta is equal to the correlation multiplied by the ratio of the variances

1. Suppose we have a stock with a standard deviation of 33.55%.

   The market standard deviation is 15.12%.

   The correlation coefficient for the stock and the market is .89.

   What is the Beta of the stock?

   	A.	.992
   	B.	1.67
   	C.	1.97
   	D.	2.11