You Are Given the Following Returns on "The Market" and Stock

Multiple Choice

You are given the following returns on "the market" and Stock F during the last three years.We could calculate beta using data for Years 1 and 2 and then,after Year 3,calculate a new beta for Years 2 and 3.How different are those two betas,i.e. ,what's the value of beta 2 − beta 1? (Hint: You can find betas using the Rise-Over-Run method,or using your calculator's regression function. )
Year
Market
Stock F
1
6) 10%
6) 50%
2
12) 90%
−3) 70%
3
16) 20%
21) 71%

A) 7.89
B) 8.30
C) 8.74
D) 9.20
E) 9.66