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Based on the following information, make an estimate of the stock's beta: Month 1 = Stock +0.5%, Market +1.0%; Month 2=Stock +0.9%, Market+1.1%; Month 3=Stock-1.9%,
Based on the following information, make an estimate of the stock's beta: Month 1 = Stock +0.5%, Market +1.0%; Month 2=Stock +0.9%, Market+1.1%; Month 3=Stock-1.9%, Market-2.0%
- Beta is greater than 1.0
- Beta is less than 1.0
- Beta equals 1.0
- There is no consistent pattern of returns.
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
