You have developed data which give (1) the percentage annual returns of the market for the past five years and (2) similar percentage annual returns information on Stocks A and B. Which of the possible answers best describes the historical beta for A and B? Years Market % returns Stock A % returns Stock B % returns 2023 3% 16% 5% 2022 5% 20% 5% 2021 1% 10% 5% 2020 -10% -25% 5% 2019 6% 24% 5% A) bA > 0; bB = 1. B) bA > +1; bB = 0. C) bA = 0; bB < ─1. D) bA < +1; bB = 0. E) bA > ─1; bB > 1. F) None of the above (state your answer)
You have developed data which give (1) the percentage annual returns of the market for the past five years and (2) similar percentage annual returns information on Stocks A and B. Which of the possible answers best describes the historical beta for A and B? Years Market % returns Stock A % returns Stock B % returns 2023 3% 16% 5% 2022 5% 20% 5% 2021 1% 10% 5% 2020 -10% -25% 5% 2019 6% 24% 5% A) bA > 0; bB = 1. B) bA > +1; bB = 0. C) bA = 0; bB < ─1. D) bA < +1; bB = 0. E) bA > ─1; bB > 1. F) None of the above (state your answer)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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19. You have developed data which give (1) the percentage annual returns of the market for the past five years and (2) similar percentage annual returns information on Stocks A and B. Which of the possible answers best describes the historical beta for A and B? Years Market % returns Stock A % returns Stock B % returns 2023 3% 16% 5% 2022 5% 20% 5% 2021 1% 10% 5% 2020 -10% -25% 5% 2019 6% 24% 5% A) bA > 0; bB = 1. B) bA > +1; bB = 0. C) bA = 0; bB < ─1. D) bA < +1; bB = 0. E) bA > ─1; bB > 1. F) None of the above (state your answer)
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