In capital asset pricing model, covariance between stock and market is divided by variance of market returns is used to calculate

sales turnover of company
risk rate of company
beta coefficient of company
weighted mean of company

The correct answer is C. beta coefficient of company.

Beta is a measure of a stock’s volatility relative to the market. It is calculated by taking the covariance of a stock’s returns with the market’s returns and dividing it by the variance of the market’s returns. A beta of 1 means that the stock moves in perfect correlation with the market. A beta of less than 1 means that the stock is less volatile than the market, and a beta of greater than 1 means that the stock is more volatile than the market.

Sales turnover is a measure of how quickly a company sells its inventory. It is calculated by dividing the company’s net sales by its average inventory. A high sales turnover indicates that a company is able to sell its inventory quickly, which can be a sign of good management.

Risk rate is a measure of the potential for loss in an investment. It is calculated by taking the expected return of an investment and subtracting the risk-free rate of return. A higher risk rate indicates that an investment is more volatile and has a greater potential for loss.

Weighted mean is a measure of the average of a set of numbers, where each number is weighted according to its importance. It is calculated by multiplying each number in the set by its weight and then dividing the sum of the products by the sum of the weights.

In conclusion, the correct answer is C. beta coefficient of company.

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