Final answer:
Dinosaurs Inc.'s beta with the market, calculated using CAPM, is 0.576. This represents the level of systemic risk relative to the market.
Step-by-step explanation:
The student is asking about the calculation of a stock's beta using the Capital Asset Pricing Model (CAPM), which is a concept in finance that describes the relationship between systematic risk and expected return for assets, typically stocks. To calculate Dinosaurs Inc.'s beta, we use the formula:
Beta = (Correlation of Dinosaurs Inc. with the market) * (Volatility of Dinosaurs Inc. / Volatility of the market)
Substituting the given values:
Beta = 0.60 * (24% / 25%)
Beta = 0.60 * 0.96
Beta is therefore 0.576, which is the measure of the systemic risk Dinosaurs Inc. stock has in relation to the market.