You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B. Which of the possible answers best describes the historical betas for A and B? Years Market Stock A Stock B 1 0.03 0.16 0.05 2 - 0.05 0.20 0.05 3 0.01 0.18 0.05 4 - 0.10 0.25 0.05 5 0.06 0.14 0.05
a. bA > 0; bB = 1.
b. bA > + 1; bB = 0.
c. bA = 0; bB = - 1.
d. bA < 0; bB = 0.
e. bA < - 1; bB = 1.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
What business structure automatically reinvests profits in the corporation? Question 1 options: An S corporation A nonprofit corporation A sole proprietorship A limited partnership
Answers (1)
A company has beginning inventory of 14 units at a cost of $12.00 each on October 1. On October 5, it purchases 13 units at $13.00 per unit. On October 12 it purchases 23 units at $14.00 per unit. On October 15, it sells 39 units.
Answers (1)
The price of a unit of capital is 2 comma 000. The rate of depreciation is: 20 % per year. The annual real rate of interest is: 7 % What is the user cost of capital?
Answers (1)
You want to implement name resolution on the Linux workstations in your company. Which protocol will you use to do this?
Answers (1)
Which of the following accounts will give you the least Access to your money A. simple savings account B. certificate of deposit C. checking account D. cash
Answers (1)
New Questions in Business
Soles is a footwear company which has recently set up its store in Ambrosia. To manufacture its products, Soles incurs a range of different costs. Which of the following would be an example of an indirect cost? a. Salary paid to factory workersb.
Answers (1)
The Nolan Corporation finds it is necessary to determine its marginal cost of capital. Nolan's current capital structure calls for 30 percent debt, 20 percent preferred stock, and 50 percent common equity.
Answers (1)
Gaston owns equipment that cost $17,000 with accumulated depreciation of $3,400. Gaston sells the equipment for $12,200.
Answers (1)
If the supply of loanable funds exceeds the demand then borrowers will bid up the interst rate. True / False.
Answers (1)
The scientific method begins with A. the development of a formal hypothesis. B. the gathering of information. C. the identification of a problem for investigation. D. methodical observation of a phenomenon of interest.
Answers (1)