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Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns. Market Return Stock A Stock B
Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns.
Market Return | Stock A | Stock B |
10% | 5% | 12 |
20% | 25 | 15 |
What are the betas of the two stocks?
not enough information to determine | ||
Beta (A) = -2; Beta (B) = 0.3 | ||
Beta (A) = 2; Beta (B) = 0.3 | ||
Beta (A) = 1.87; Beta (B) = 0.55 |
wich one
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