Chapter 3 - correlation. = (0.4/0.2)*0.7 Stock As beta = 1.4

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Chapter 3 The standard deviation of stock returns for stock A is 40%. The standard deviation of the market return is 20%. If the correlation between Stock A and the market is 0.70, what is Stock A's beta? Beta= (STD deviation of stock returns for stock A/ STD deviation of mkt return)*
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Unformatted text preview: correlation. = (0.4/0.2)*0.7 Stock As beta = 1.4 http://money.msn.com/business-news/article.aspx? feed=OBR&date=20110126&id=12602375...
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