You run a regression of a share's returns versus a market index and find the following: Based on the data you know that the share
A)earned a positive alpha that is statistically significantly different from zero
B)has a beta precisely equal to 0.890
C)has a beta that could be anything between 0.6541 and 1.465 inclusive
D)has no systematic risk

Question

You run a regression of a share's returns versus a market index and find the following:  Based on the data you know that the share
A)earned a positive alpha that is statistically significantly different from zero 
B)has a beta precisely equal to 0.890 
C)has a beta that could be anything between 0.6541 and 1.465 inclusive 
D)has no systematic risk

Quizplus · Accepted Answer

The Answer of You run a regression of a share's returns versus a market index and find the following:  Based on the data you know that the share
A)earned a positive alpha that is statistically significantly different from zero 
B)has a beta precisely equal to 0.890 
C)has a beta that could be anything between 0.6541 and 1.465 inclusive 
D)has no systematic risk

You Run a Regression of a Share's Returns Versus a Market