You Have the Following Data on (1) the Average Annual

Multiple Choice

You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B. Which of the possible answers best describes the historical betas for A and B?

A) bA > 0; bB = 1.
B) bA > +1; bB = 0.
C) bA = 0; bB = -1.
D) bA < 0; bB = 0.
E) bA < -1; bB = 1.