You are given the following returns on "the market" and Stock Q 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.)

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 Q 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.)

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 Q 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.)

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