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

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 .890 
C) has a beta that is likely to be anything between .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 .890 
C) has a beta that is likely to be anything between .6541 and 1.465 inclusive 
D) has no systematic risk

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