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.
Correct Answer:
Verified
Q9: Which of the following is an assumption
Q10: To identify the tangency portfolio:
A)we must find
Q11: A portfolio consists of three stocks with
Q12: The market portfolio is:
A)a portfolio where the
Q13: What are the main assumptions of mean-variance
Q14: Which of the following equations is used
Q15: Which of the following is an assumption
Q16: The efficient frontier represents:
A)the means and correlation
Q17: What is beta? Why is it that
Q19: Explain the concept of efficient frontier.
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