Data Table Monthly Returns New Stock Stock Index 0.060 0.05 0.050 0.18 -0.050 -0.04 -0.080 - 0.19 -0.050 -0.07 0.010 -0.01 0.020 0.13 -0.080 -0.18 0.030 0.03 -0.020 -0.02 0.060 0.11 0.040 0.04 Print Done An Investor is considering the possibility of including a new stock in his portfolio. Data for this task are found in the accompanying table. Compare the mean and variance of the monthly return with the stock Index mean and varlance. Then, estimate the beta coefficient. Based on this analysis what would you recommend to the investor? 23 Click the icon to view the data The mean return of the new stock is. (Round to three decimal places as needed.) The mean return of the stock index is. (Round to three decimal places as needed.) The variance of the new stock's returns is (Round to three decimal places as needed.) The variance of the stock index retums is. (Round to three decimal places as needed.) Now compare the mean and variance of the monthly return with the stock index mean and variance. O A. The mean return of the new stock is less than the mean relumn of the stock index. The variance of the new stock is greater than the variance of the stock index OB. The mean retum of the new stock is greater than the mean retum of the stock index. The variance of new stock is less than the variance of the stock Index. O C. The mean retum of the new stock is greater than the mean retum of the stock index. The variance of the new stock is greater than the variance of the stock index. OD. The mean return of the new stock is less than the mean return of the stock index. The variance of the new stock is less than the variance of the stock index. Estimate the beta coefficient. (Round to three decimal places as needed.) Based on this analysis, what would you recommend to the investor? O A. The beta coefficient of the new stock return indicates that the stock is less responsive than the overall market. This stock would be a good pick if market conditions were expected to improve. O B. The beta coefficient of the new stock return indicates that the stock is less responsive than the overall market. This stock would be a good pick if market conditions were expected to worsen. OC. The beta coefficient of the new stock return indicates that the stock is more responsive than the overall market. This stock would be a good pick if market conditions were expected improve OD. The bela coefficient of the new stock return indicates that the stock is more responsive than the overall market. This stock would be a good pick if market conditions were expocted to worson Data Table Monthly Returns New Stock Stock Index 0.060 0.05 0.050 0.18 -0.050 -0.04 -0.080 - 0.19 -0.050 -0.07 0.010 -0.01 0.020 0.13 -0.080 -0.18 0.030 0.03 -0.020 -0.02 0.060 0.11 0.040 0.04 Print Done An Investor is considering the possibility of including a new stock in his portfolio. Data for this task are found in the accompanying table. Compare the mean and variance of the monthly return with the stock Index mean and varlance. Then, estimate the beta coefficient. Based on this analysis what would you recommend to the investor? 23 Click the icon to view the data The mean return of the new stock is. (Round to three decimal places as needed.) The mean return of the stock index is. (Round to three decimal places as needed.) The variance of the new stock's returns is (Round to three decimal places as needed.) The variance of the stock index retums is. (Round to three decimal places as needed.) Now compare the mean and variance of the monthly return with the stock index mean and variance. O A. The mean return of the new stock is less than the mean relumn of the stock index. The variance of the new stock is greater than the variance of the stock index OB. The mean retum of the new stock is greater than the mean retum of the stock index. The variance of new stock is less than the variance of the stock Index. O C. The mean retum of the new stock is greater than the mean retum of the stock index. The variance of the new stock is greater than the variance of the stock index. OD. The mean return of the new stock is less than the mean return of the stock index. The variance of the new stock is less than the variance of the stock index. Estimate the beta coefficient. (Round to three decimal places as needed.) Based on this analysis, what would you recommend to the investor? O A. The beta coefficient of the new stock return indicates that the stock is less responsive than the overall market. This stock would be a good pick if market conditions were expected to improve. O B. The beta coefficient of the new stock return indicates that the stock is less responsive than the overall market. This stock would be a good pick if market conditions were expected to worsen. OC. The beta coefficient of the new stock return indicates that the stock is more responsive than the overall market. This stock would be a good pick if market conditions were expected improve OD. The bela coefficient of the new stock return indicates that the stock is more responsive than the overall market. This stock would be a good pick if market conditions were expocted to worson