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An Asset Has a Standard Deviation of 5% and a Correlation

Question 20

Multiple Choice

An asset has a standard deviation of 5% and a correlation with the market portfolio of 0.70.If the market has a standard deviation of 28%,what is the beta of the asset?


A) 0.13 0.13
B) 0.31 0.31
C) 0.60 0.60
D) 0.68 0.68

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