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Ket [755]
3 years ago
13

A stock has a correlation with the market of 0.53. The standard deviation of the market is 29%, and the standard deviation of th

e stock is 32%. What is the stock's beta?
Business
1 answer:
Zielflug [23.3K]3 years ago
5 0

Answer: 0.58

Explanation:

Given the parameters in the question, Beta can be solved by the following formula;

= Correlation with market * ( Standard deviation of stock / Standard deviation of market)

= 0.53 * (32%/29%)

= 0.58

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