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The Correlation Coefficient Between a Stock and the Market Portfolio

Question 13

Multiple Choice

The correlation coefficient between a stock and the market portfolio is +0.6.The standard deviation of return of the stock is 30% and that of the market portfolio is 20%.Calculate the beta of the stock.


A) 1.1
B) 1.0
C) 0.9
D) 0.6Cov

Correct Answer:

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