menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Portfolio Construction Management
  4. Exam
    Exam 5: The Mathematics of Diversification
  5. Question
    The Covariance Between a Security's Returns and Those of the Market
Solved

The Covariance Between a Security's Returns and Those of the Market

Question 39

Question 39

Multiple Choice

The covariance between a security's returns and those of the market index is 0.03. If the security beta is 1.15, what is the market variance?


A) 0.005
B) 0.010
C) 0.021
D) 0.026

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q34: Suppose Stock A has an expected return

Q35: Suppose Stock A has an expected return

Q36: There are 1,700 stocks in the Value

Q37: One of the first proponents of the

Q38: Covariance is _ correlation is _.<br>A) positive,

Q40: There are 1,700 stocks in the Value

Q41: A security has a return variance of

Q42: The variance of a two-security portfolio decreases

Q43: The covariance of a random variable with

Q44: The least risk portfolio is called the<br>A)

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines