You observe that Telstra shares and the S&P/ASX 200 index have the following weekly returns: $$\begin{array} { c c c }
\text { Week } & \text { Telstra return } & \text { S\&P/ASX 200 return } \
\hline 1 & 0.005 & 0.001 \
2 & 0.010 & 0.005 \
3 & - 0.003 & - 0.005 \
4 & - 0.005 & - 0.001
\end{array}$$ If this pattern of returns is typical of Telstra shares, and you calculated a beta against the S&P/ASX 200, which of the following is true?

Question

You observe that Telstra shares and the S&P/ASX 200 index have the following weekly returns: $$\begin{array} { c c c } 
\text { Week } & \text { Telstra return } & \text { S\&P/ASX 200 return } \
\hline 1 & 0.005 & 0.001 \
2 & 0.010 & 0.005 \
3 & - 0.003 & - 0.005 \
4 & - 0.005 & - 0.001
\end{array}$$ If this pattern of returns is typical of Telstra shares, and you calculated a beta against the S&P/ASX 200, which of the following is true?

Quizplus · Accepted Answer

Telstra's returns generally move in the same direction as the S&P/ASX 200 returns, indicating a positive beta.

You Observe That Telstra Shares and the S&P/ASX 200 Index