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

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?
$\begin{array}{l}\begin{array} { l } \text { Years } & \text { Market } \\1&0.03 \\2 & -0.05 \\3 & 0.01 \\4 & -0.10 \\5 & 006\end{array}\begin{array} { l } \text { Stock A } \\ 0.16 \\0.20 \\0.18 \\0.25 \\014\end{array}\begin{array} { l } \text { Stock B } \\ 0.05 \\0.05 \\0.05 \\0.05 \\005\end{array}\end{array}$

A) b_A > +1; b_B = 0.
B) b_A = 0; b_B = -1.
C) b_A < 0; b_B = 0.
D) b_A < -1; b_B = 1.
E) b_A > 0; b_B = 1.