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Q. |
The market risk, beta, of a security is equal to |
A. | the covariance between the security's return and the market return divided by the variance of the market's returns. |
B. | the covariance between the security and market returns divided by the standard deviation of the market's returns. |
C. | the variance of the security's returns divided by the covariance between the security and market returns. |
D. | the variance of the security's returns divided by the variance of the market's returns. |
Answer» A. the covariance between the security's return and the market return divided by the variance of the market's returns. |
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