Stock A has an expected return of 12 percent and a variance of .0203. The market...

Stock A has an expected return of 12 percent and a variance of .0203. The market has an expected return of 11 percent and a variance of .0093. What is the beta of Stock A if the covariance of Stock A with the market is .0137. Select one:

a. .68 b. .76 c. 1.55 d. 1.47 e. 1.32

Expert Solution

Beta = covar/var = .0137/.0093. = 1.47

So option d is correct

jeff jeffy answered 2 years ago

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