The Beta of a Stock or Portfolio Is The

Multiple Choice

The beta of a stock or portfolio is the:

A) ratio of its covariance with the returns of the tangency portfolio to the market risk premium of the market portfolio.
B) ratio of its covariance with the returns of the tangency portfolio to the standard deviation of the tangency portfolio.
C) ratio of its covariance with the returns of the tangency portfolio to the variance of the tangency portfolio.
D) ratio of its correlation with the returns of the tangency portfolio to the standard deviation of the tangency portfolio.