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An Asset Has a Standard Deviation of 30% and a Correlation

Question 31

Multiple Choice

An asset has a standard deviation of 30% and a correlation with the market portfolio of 0.60.If the market has a standard deviation of 30%,how much lower is the beta of the asset relative to the market?


A) 0.05 0.05
B) 0.10 0.10
C) 0.18 0.18
D) 0.40 0.40

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