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You Run a Regression of a Stock's Returns Versus a Market

Question 38

Multiple Choice

You run a regression of a stock's returns versus a market index and find the following:
You run a regression of a stock's returns versus a market index and find the following: Based on the data, you know that the stock ________. A) earned a positive alpha that is statistically significantly different from zero B) has a beta precisely equal to .890 C) has a beta that is likely to be anything between .6541 and 1.465 inclusive D) has no systematic risk
Based on the data, you know that the stock ________.


A) earned a positive alpha that is statistically significantly different from zero
B) has a beta precisely equal to .890
C) has a beta that is likely to be anything between .6541 and 1.465 inclusive
D) has no systematic risk

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