Consider the following average annual returns for Stocks A and B and the Market. Which of the possible answers best describes the historical betas for A and B? A) b_A +1; b_B = 0. B) b_A = 0; b_B = −1. C) b_A

Question

Consider the following average annual returns for Stocks A and B and the Market. Which of the possible answers best describes the historical betas for A and B? A) b_A > +1; b_B = 0. B) b_A = 0; b_B = −1. C) b_A < 0; b_B = 0. D) b_A < −1; b_B = 1. E) b_A > 0; b_B = 1.

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The Answer of Consider the following average annual returns for Stocks A and B and the Market. Which of the possible answers best describes the historical betas for A and B? A) b_A > +1; b_B = 0. B) b_A = 0; b_B = −1. C) b_A < 0; b_B = 0. D) b_A < −1; b_B = 1. E) b_A > 0; b_B = 1.

Consider the Following Average Annual Returns for Stocks a and B