Solved

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

Question 44

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? ​
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) b<sub>A</sub> > 0; b<sub>B</sub> = 1. B) b<sub>A</sub> > +1; b<sub>B</sub> = 0. C) b<sub>A</sub> = 0; b<sub>B</sub> = −1. D) b<sub>A</sub> < 0; b<sub>B</sub> = 0. E) b<sub>A</sub> < −1; b<sub>B</sub> = 1.


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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q11: If you plotted the returns on a

Q43: A mutual fund manager has a $40

Q46: Assume that you manage a $10.00 million

Q47: Managers should under no conditions take actions

Q48: Consider the following information and then calculate

Q49: Returns for the Dayton Company over the

Q54: Which of the following statements is CORRECT?<br>A)

Q67: Nile Food's stock has a beta of

Q80: An individual stock's diversifiable risk, which is

Q102: Stock X has a beta of 0.6,while