3

Market_State	Probability	CLS	DCP	JSE
Brilliant	15%	35.29%	26.47%	30.88%
Good	20%	9.18%	6.89%	8.04%
Neutral	40%	2.09%	1.57%	1.83%
Bad	20%	0.46%	0.34%	0.4%
Terrible	5%	-4.76%	-3.57%	-4.17%

Use the following information to answer Question 1

You have been provided returns for two shares, Clicks (JSE:CLS) and Dischem (JSE:DCP). Using the returns and probabilities, answer the following questions:

Question 1

The beta of Clicks is closest to:

1. 1.3714

2. 1.0114

3. 1.1657

4. 0.9085

5. 1.1428