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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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