Here are rates of return for six months for Generic Risk, Inc. What is Generics beta? (Hint:

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Here are rates of return for six months for Generic Risk, Inc. What is Generic’s beta?

(Hint: Find the answer by plotting the scatter diagram.)

Month Market Return Generic Return 1 0% ⫹2%

2 0 0 3 ⫺1 0 4 ⫺1 ⫺2 5 ⫹1 ⫹4 6 ⫹1 ⫹2 Challenge LO.1

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Essentials Of Investments

ISBN: 9780697789945

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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