Based on the following information, make an estimate of the stock's Beta: Month 1 = Stock +1.5%, Market +1.1%; Month 2 = Stock +2.0%, Market +1.4%; Month 3 = Stock -2.5%, Market -2.0%.
A) Beta is greater than 1.0
B) Beta is less than 1.0
C) Beta equals 1.0
D) There is no consistent pattern of returns
Correct Answer:
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