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Consider the following Information on Stock A and B: State of the Prob. of Stock A Stock B Economy State Return Return Good 54% -15.01%
Consider the following Information on Stock A and B: State of the Prob. of Stock A Stock B Economy State Return Return Good 54% -15.01% 15.48% OK 29% 12.50% 10.34% Bad -8.03% -8.82% The return on the market is 12.45%, and the risk-free rate is 3.70%. Given this information, the Beta of stock A is and the Beta of Stock B is 17% -0.25, 1.55 O 1.09, 0.70 1.09, 0.49 O -1.09, 0.70 0 -1.09, 0.49
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