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? A) $ \mathrm{bA}0 ; \quad \mathrm{bB}=1 $. B) $ \mathrm{ba}_{\mathrm{A}}+1 ; \quad \mathrm{bB}_{\mathrm{B}}=0 $. C) $ \mathrm{b}_{\mathrm{A}}=0 ; \mathrm{b}_{\mathrm{B}}=-1 $. D) $ \mathrm{bA}_{\mathrm{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?
$You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B. Which of the possible answers best describes the historical betas for A and B? A) \mathrm{bA}>0 ; \quad \mathrm{bB}=1 . B) \mathrm{ba}_{\mathrm{A}}>+1 ; \quad \mathrm{bB}_{\mathrm{B}}=0 . C) \mathrm{b}_{\mathrm{A}}=0 ; \mathrm{b}_{\mathrm{B}}=-1 . D) \mathrm{bA}_{\mathrm{A}}<0 ; \quad \mathrm{bB}_{\mathrm{B}}=0 . E) \mathrm{b}_{\mathrm{A}}<-1 ; \mathrm{b}_{\mathrm{B}}=1 .$

Quizplus · Accepted Answer

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? A) $ \mathrm{bA}>0 ; \quad \mathrm{bB}=1 $. B) $ \mathrm{ba}_{\mathrm{A}}>+1 ; \quad \mathrm{bB}_{\mathrm{B}}=0 $. C) $ \mathrm{b}_{\mathrm{A}}=0 ; \mathrm{b}_{\mathrm{B}}=-1 $. D) $ \mathrm{bA}_{\mathrm{A}}<0 ; \quad \mathrm{bB}_{\mathrm{B}}=0 $. E) $ \mathrm{b}_{\mathrm{A}}<-1 ; \mathrm{b}_{\mathrm{B}}=1 $.

You Have the Following Data on (1) the Average Annual bA>0;bB=1 \mathrm{bA}>0 ; \quad \mathrm{bB}=1 bA>0;bB=1

You Have the Following Data on (1) the Average Annual $\mathrm{bA}>0 ; \quad \mathrm{bB}=1$