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amber Seal is a financial planner hired to review KMB stock. She is considering the CAPM where the KMB risk - adjusted stock return R

amber Seal is a financial planner hired to review KMB stock. She is considering the CAPM where the KMB risk-adjusted stock return R Rf is used as the response variable and the risk-adjusted market return Rm Rf is used as the predictor variable. KMB stock is considered staple products, whether the economy is good or bad. Given estimates for the beta coefficient is 0.7975, standard error of 0.1023, and a p-value of 0.048 with a formulated hypothesis of H0 : \beta >=1 HA : \beta 1. At a 5% significance level, what is the risk determination of the stock against the market?TB MC Qu.07.36(Algo) Camber Seal is a financial...
Camber Seal is a financial planner hired to review KMB stock. She is considering the CAPM where the KMB risk-adjusted stock return R-Rf is used as the response
variable and the risk-adjusted market return Rm-Rf is used as the predictor variable. KMB stock is considered staple products, whether the economy is good or bad.
Given estimates for the beta coefficient is 0.7975, standard error of 0.1023, and a p-value of 0.048 with a formulated hypothesis of H0:1HA:1. At a 5%
significance level, what is the risk determination of the stock against the market?
Multiple Choice
is significantly less than one, thus, H0 : is rejected and less risky than the market.
is significantly higher than one, thus, H0 : is accepted and less risky than the market.
is significantly less than one, thus, H0 : is accepted and riskier than the market.
is significantly higher than one, thus, H0 : is rejected and riskier than the market.
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