Multiple Choice
The beta of a security is calculated by dividing the:
A) covariance of the security return with the market return by the variance of the market.
B) correlation of the security return with the market return by the variance of the market.
C) variance of the market by the covariance of the security return with the market return.
D) variance of the market return by the correlation of the security return with the market return.
E) covariance of the security return with the market return by the correlation of the security and market returns.
Correct Answer:

Verified
Correct Answer:
Verified
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