Financial Expert!!!!

If you are not sure plz dont anwer the question!!!

Need a definition about whats going to happen when the Observation was Zero and what going to happen the return..

Need clear clarification....if you want to add graph you can...but need that exact correct answer of 3rd one....why it is true/false

why is that anwer?

If you plotted the returns of a company against those of the market and found that the slope of your line was negative, the CAPM would indicate that the required rate of return on the stock should be less than the risk-free rate for a well-diversified investor, assuming that the observed relationship is expected to continue in the future. It will true If you plotted the returns on a given stock against those of the market, and if you found that the slope of the regression line was negative, the CAPM would indicate that the required rate of return on the stock should be greater than the risk-free rate for a well-diversified investor, assuming that the observed relationship is expected to continue into the future. It will be false If you plotted the returns of a given stock against those of the market, and if you found that the slope of the line that represents all observations was zero, the CAPM would indicate that the required rate of return on the asset should be less than the risk free rate for a well diversified investor (assuming that the observed relationship is expected to continue into the future. A. False B. Need more information to decide C. True