Calculate the beta for an asset with a variance of 10%,where the market has a variance of 15% and a covariance with the asset of 20%.

A) $ 0.15 $
B) $ 1.33 $
C) $ 0.75 $
D) $ 1.50 $

Name: Calculate the beta for an asset with a variance of 10%,where the market has a variance of 15% and a covariance with the asset of 20%. A) $ 0.15 $ B) $ 1.33 $ C) $ 0.75 $ D) $ 1.50 $
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Question

Calculate the beta for an asset with a variance of 10%,where the market has a variance of 15% and a covariance with the asset of 20%.

A) $ 0.15 $
B) $ 1.33 $
C) $ 0.75 $
D) $ 1.50 $

Quizplus · Accepted Answer

Using equation 8.2,we can compute the beta as follows: 0.2/0.15 = 1.33

Calculate the Beta for an Asset with a Variance of 10%,where