• 1.There are different ways to calculating the bets coefficient for a stock. Using the information given in the following table, calculate the beta coefficient of Stocki

Stock Is standard deviation 45.50%

Markets standard deviation 41.60%

Correlation between Stock i

and the market 0.85

Beta coefficient of Stock i : (pick one of the answer choices .79, 1.12, 1.40, or .93)

2.To calculate the beta of another company, using regression analysis, you get the value of R (squared) as 0.27. Based on your calculation, which of the following interpretation is true?

Pick one

73% of the variance in the companys return can be explained by the market returns.

Or

27% of the variance in the companys return can be explained by the market returns.