Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Biblical Finance Reflections On Money Wealth And Possessions

Authors: Mark Lloydbottom, Keith Tondeur

1st Edition

0956395023, 978-0956395023

More Books

Students also viewed these Finance questions