Fishing supply company, Outside Tackle, has its returns graphed against the market returns for a 5 year period. The line that has the best fit
Fishing supply company, Outside Tackle, has its returns graphed against the market returns for a 5 year period. The line that has the best fit for the data has the formula y = .1254 + 1.265x. What information can we derive from this?
A.The beta of Outside Tackle is .1254.
B.The systematic risk of Outside Tackle is less than average for the market.
C.The beta for Outside Tackle is 1.265.
D.Outside Tackle has posted better returns than the market for this time period.
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Authors: Ned C. Hill, William L. Sartoris
3rd Edition
0023548320, 978-0023548321
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