You are given the following returns on "the market" and Stock F during the last three years.We could calculate beta using data for Years 1 and 2 and then, after Year 3, calculate a new beta for Years 2 and 3.How different are those two betas, i.e., what's the value of beta 2 - beta 1? (Hint: You can find betas using the Rise-Over-Run method, or using your calculator's regression function.) $$\begin{array} { c r r }
\text { Year } & \text { Market } & \text { Stock F } \
1 & 6.10 \% & 6.50 \% \
2 & 12.90 \% & - 3.70 \% \
3 & 16.20 \% & 21.71 \%
\end{array}$$
A) 7.89
B) 8.30
C) 8.74
D) 9.20
E) 9.66

Question

You are given the following returns on "the market" and Stock F during the last three years.We could calculate beta using data for Years 1 and 2 and then, after Year 3, calculate a new beta for Years 2 and 3.How different are those two betas, i.e., what's the value of beta 2 - beta 1? (Hint: You can find betas using the Rise-Over-Run method, or using your calculator's regression function.) $$\begin{array} { c r r } 
\text { Year } & \text { Market } & \text { Stock F } \
1 & 6.10 \% & 6.50 \% \
2 & 12.90 \% & - 3.70 \% \
3 & 16.20 \% & 21.71 \%
\end{array}$$
A) 7.89
B) 8.30
C) 8.74
D) 9.20
E) 9.66

Quizplus · Accepted Answer

The Answer of You are given the following returns on "the market" and Stock F during the last three years.We could calculate beta using data for Years 1 and 2 and then, after Year 3, calculate a new beta for Years 2 and 3.How different are those two betas, i.e., what's the value of beta 2 - beta 1? (Hint: You can find betas using the Rise-Over-Run method, or using your calculator's regression function.) $$\begin{array} { c r r } 
\text { Year } & \text { Market } & \text { Stock F } \
1 & 6.10 \% & 6.50 \% \
2 & 12.90 \% & - 3.70 \% \
3 & 16.20 \% & 21.71 \%
\end{array}$$
A) 7.89
B) 8.30
C) 8.74
D) 9.20
E) 9.66

You Are Given the Following Returns on "The Market" and Stock