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? $$\begin{array} { c r r r } \text { Years } & \text { Market } & \text { Stock A } & \text { Stock B } \ 1 & 0.03 & 0.16 & 0.05 \ 2 & - 0.05 & 0.20 & 0.05 \ 3 & 0.01 & 0.18 & 0.05 \ 4 & - 0.10 & 0.25 & 0.05 \ 5 & 0.06 & 0.14 & 0.05 \end{array}$$ A) bA 0;bB = 1. B) bA +1;bB = 0. C) bA = 0;bB = -1. D) bA

Question

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? $$\begin{array} { c r r r } \text { Years } & \text { Market } & \text { Stock A } & \text { Stock B } \ 1 & 0.03 & 0.16 & 0.05 \ 2 & - 0.05 & 0.20 & 0.05 \ 3 & 0.01 & 0.18 & 0.05 \ 4 & - 0.10 & 0.25 & 0.05 \ 5 & 0.06 & 0.14 & 0.05 \end{array}$$ 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.

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The Answer of 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? $$\begin{array} { c r r r } \text { Years } & \text { Market } & \text { Stock A } & \text { Stock B } \ 1 & 0.03 & 0.16 & 0.05 \ 2 & - 0.05 & 0.20 & 0.05 \ 3 & 0.01 & 0.18 & 0.05 \ 4 & - 0.10 & 0.25 & 0.05 \ 5 & 0.06 & 0.14 & 0.05 \end{array}$$ 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.

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