You observe that AT&T stock and the S&P 500 have the following weekly returns:
If this pattern of stock returns is typical of AT&T stock,and you calculated a beta against the S&P 500,which of the following is true?

Question

You observe that AT&T stock and the S&P 500 have the following weekly returns: 
If this pattern of stock returns is typical of AT&T stock,and you calculated a beta against the S&P 500,which of the following is true?

Quizplus · Accepted Answer

The question states that the pattern of stock returns is typical of AT&T stock, and it also provides the returns of both AT&T stock and the S&P 500. With this information, it is possible to calculate the beta of AT&T stock against the S&P 500. If the weekly returns of AT&T stock consistently move in the same direction as the weekly returns of the S&P 500, the beta will be positive. Therefore, the correct answer is C - AT&T's beta is positive.

You Observe That AT&T Stock and the S&P 500 Have