You have developed data which give (1)the average annual returns on the market for the past five years,and (2)similar information on Stocks A and B.If these data are as follows,which of the possible answers best describes the historical betas for A and B? A) β_A 0;β_B = 1 B) β_A +1;β_B = 0 C) β_A = 0;β_B = −1 D) β_A

Question

You have developed data which give (1)the average annual returns on the market for the past five years,and (2)similar information on Stocks A and B.If these data are as follows,which of the possible answers best describes the historical betas for A and B? A) β_A > 0;β_B = 1 B) β_A > +1;β_B = 0 C) β_A = 0;β_B = −1 D) β_A < 0;β_B = 0 E) β_A < −1;β_B = 1

Quizplus · Accepted Answer

The Answer of You have developed data which give (1)the average annual returns on the market for the past five years,and (2)similar information on Stocks A and B.If these data are as follows,which of the possible answers best describes the historical betas for A and B? A) β_A > 0;β_B = 1 B) β_A > +1;β_B = 0 C) β_A = 0;β_B = −1 D) β_A < 0;β_B = 0 E) β_A < −1;β_B = 1

You Have Developed Data Which Give (1)the Average Annual Returns