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maw [93]
3 years ago
6

The beta of a security is calculated as: (_____ of a security’s return with the return on the market portfolio / _______).

Business
1 answer:
spayn [35]3 years ago
5 0

Answer:

Beta of a security is the covariance of the security return with the return on the market portfolio divided by variance of the market return.

The correct answer is C

Explanation:

Beta of a security is calculated as covariance (Ri,Rm) divided by Variance of the market return. Beta is used for measuring the systematic risk of a security.

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