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A beta coefficient for a stock of 1 . 8 impliesthat a ) a 1 . 8 % return on the market will cause the

A beta coefficient for a stock of 1.8impliesthat
a) a 1.8% return on the market will cause the return on this stock to be 10%.
b) a 1.8% decrease in the market will cause the return on this stock to be 8%.
c) a return of 10% on the market will cause the return on this stock to be 8%.
d) a return of 10% on the market will cause the return on this stock to be 1.8%.
If a bank pays 6 percent compounded semi-annually, the true rate of interest is greater than 6 percent annually.
a) True
b) False
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