What is the stock beta


Problem:

A stock has a correlation with the market of 0.56. The standard deviation of the market is 29%, and the standard deviation of the stock is 37%.

Required:

Question: What is the stock's beta?

  • 1.40
  • 0.71
  • 0.44
  • 0.29

Note: Please show how to work it out.

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Finance Basics: What is the stock beta
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