Question
Company Beta coefficient A 1 B 2 C 0.5 D 0 E -0.5 F -1 G -2 The table shows the beta coefficients of shares
Company | Beta |
coefficient | |
A | 1 |
B | 2 |
C | 0.5 |
D | 0 |
E | -0.5 |
F | -1 |
G | -2 |
The table shows the beta coefficients of shares for a few listed companies.
With respect to the market return:
a)Returns of company B are : perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated
b)Returns of company D are :perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated
c)Returns of company E are :perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated
d)Returns of company G are : perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated
e)Select all companies whose returns will always move in the opposite direction to the market:
Company A Company B Company C Company D Company E Company F Company G None of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started