Index Stock A Realized Realized Year End Return Return 2000 23.6% 46.3% 2001 24.7% 26.7% 2002 30.5% 86.9% 2003 9.0% 23.1% 2004 -2.0% 0.2% 2005 -17.3% -3.2% 2006 -24.3% -27.0% 2007 32.2% 27.9% 2008 4.4% -5.1% 2009 7.4% -11.3% The beta on stock A is closest to: Select one: a. 0.25 b. 1.88 C. 0.88 d. 1.37 Question 9 Consider the following realized annual returns: Year End 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Index Realized Return 23.6% 24.7% 30.5% 9.0% -2.0% -17.3% -24.3% 32.2% 4.4% 7.4% Stock A Realized Return 46.3% 26.7% 86.9% 23.1% 0.2% -3.2% -27.0% 27.9% -5.1% -11.3% The correlation between the returns on the index and stock A is closest to: Select one: a. +0.8 b. +0.5 C. -0.2 d. +0.2