Given the following returns on Stock Q and "the market" during the last three years,what is the difference in the calculated beta coefficient of Stock Q when Year 1 and Year 2 data are used as compared to Year 2 and Year 3 data? (Hint: Think rise over run.)

A)9.17
B)9.63
C)10.11
D)10.62
E)11.15

Question

Given the following returns on Stock Q and "the market" during the last three years,what is the difference in the calculated beta coefficient of Stock Q when Year 1 and Year 2 data are used as compared to Year 2 and Year 3 data? (Hint: Think rise over run.)

A)9.17 
B)9.63 
C)10.11 
D)10.62 
E)11.15

Quizplus · Accepted Answer

The Answer is A

Given the Following Returns on Stock Q and "The Market