QUESTIONS 115 THROUGH 120 RELATE TO PORTFOLIO MANAGEMENT.

119. Information for Stock A and the market appear below:

Standard deviation of Stock A’s return 40%

Standard deviation of the market’s return 20%

Correlation of Stock A with the market 85%

The beta of Stock A is closest to:

A. 0.43.

B. 1.70.

C. 2.35.

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