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 0.890
C) has a beta that could be anything between 0.6541 and 1.465 inclusive
D) has no systematic risk

Question

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 0.890 
C) has a beta that could be anything between 0.6541 and 1.465 inclusive 
D) has no systematic risk

Quizplus · Accepted Answer

The Answer of 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 0.890 
C) has a beta that could be anything between 0.6541 and 1.465 inclusive 
D) has no systematic risk

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