You have developed data which give (1) the average annual returns on the market for the past five years, and (2) similar information on Stocks A and B.If these data are as follows, which of the possible answers best describes the historical betas for A and B? A) β_A 0; β_B = 1 B) β_A +1; β_B = 0 C) β_A = 0; β_B = −1 D) β_A

Question

You have developed data which give (1) the average annual returns on the market for the past five years, and (2) similar information on Stocks A and B.If these data are as follows, which of the possible answers best describes the historical betas for A and B? A) β_A > 0; β_B = 1 B) β_A > +1; β_B = 0 C) β_A = 0; β_B = −1 D) β_A < 0; β_B = 0 E) β_A < −1; β_B = 1

Quizplus · Accepted Answer

The Answer of You have developed data which give (1) the average annual returns on the market for the past five years, and (2) similar information on Stocks A and B.If these data are as follows, which of the possible answers best describes the historical betas for A and B? A) β_A > 0; β_B = 1 B) β_A > +1; β_B = 0 C) β_A = 0; β_B = −1 D) β_A < 0; β_B = 0 E) β_A < −1; β_B = 1

You Have Developed Data Which Give (1) the Average Annual