Which of the following is equal to the market risk, beta, of a security? ? The c

Question

Which of the following is equal to the market risk, beta, of a security?
? The covariance between the security's return and the market return divided by the variance of the market's returns
? The covariance between the security and market returns divided by the standard deviation of the market's returns
? The variance of the security's returns divided by the covariance between the security and market returns
? The variance of the security's returns divided by the variance of the market's returns

Explanation / Answer

Answer is the first one Beta= covariance of stock with market returns/variance of market returns.

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