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Based on the following information, make an estimate of the stock's beta: Month 1 = Stock +1.5%, Market +1.1%; Month 2 = Stock +2.0%, Market
Based on the following information, make an estimate of the stock's beta: Month 1 = Stock +1.5%, Market +1.1%; Month 2 = Stock +2.0%, Market +1.4%; Month 3 = Stock -2.5%, Market -2.0%. [Hint: No calculation needed]
- A. Beta is greater than 1.0.
- B. Beta is less than 1.0.
- C. Beta equals 1.0.
- D. There is no consistent pattern of returns.
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