You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B.Which of the possible answers best describes the historical betas for A and B? $$\begin{array} { c r r c } \text { Years } & \text { Market } & \text { Stock A } & \text { Stock B } \ \hline 1 & 0.03 & 0.16 & 0.05 \ 2 & -0.05 & 0.20 & 0.05 \ 3 & 0.01 & 0.18 & 0.05 \ 4 & -0.10 & 0.25 & 0.05 \ 5 & 0.06 & 0.14 & 0.05 \end{array}$$ A) b_A +1; b_B = 0. B) b_A = 0; b_B = -1. C) b_A

Question

You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B.Which of the possible answers best describes the historical betas for A and B? $$\begin{array} { c r r c } \text { Years } & \text { Market } & \text { Stock A } & \text { Stock B } \ \hline 1 & 0.03 & 0.16 & 0.05 \ 2 & -0.05 & 0.20 & 0.05 \ 3 & 0.01 & 0.18 & 0.05 \ 4 & -0.10 & 0.25 & 0.05 \ 5 & 0.06 & 0.14 & 0.05 \end{array}$$ A) b_A > +1; b_B = 0. B) b_A = 0; b_B = -1. C) b_A < 0; b_B = 0. D) b_A < -1; b_B = 1. E) b_A > 0; b_B = 1.

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The Answer of You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B.Which of the possible answers best describes the historical betas for A and B? $$\begin{array} { c r r c } \text { Years } & \text { Market } & \text { Stock A } & \text { Stock B } \ \hline 1 & 0.03 & 0.16 & 0.05 \ 2 & -0.05 & 0.20 & 0.05 \ 3 & 0.01 & 0.18 & 0.05 \ 4 & -0.10 & 0.25 & 0.05 \ 5 & 0.06 & 0.14 & 0.05 \end{array}$$ A) b_A > +1; b_B = 0. B) b_A = 0; b_B = -1. C) b_A < 0; b_B = 0. D) b_A < -1; b_B = 1. E) b_A > 0; b_B = 1.

You Have the Following Data on (1) the Average Annual