The beta of a stock is a measure of the sensitivity of its returns to those of the market as a whole. When linear regression is used to compare the returns of a stock market index to those of a particular investment, the best way to express beta is:
a. The covariance of the asset’s returns with those of the market, divided by the variance of the market’s returns
b. The correlation coefficient between the returns of the market and those of the asset, times the standard deviation of the asset’s returns, divided by the standard deviation of the market’s returns
c. Both of these answers are correct