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Refer to the diagram below to answer the following two questions. Figure 6.1 Characteristic Line for Scars o.s 0.6 0.2 20.40 0.1 0.2 0.3 0.4

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Refer to the diagram below to answer the following two questions. Figure 6.1 Characteristic Line for Scars o.s 0.6 0.2 20.40 0.1 0.2 0.3 0.4 0.2 0.4 0.6- The equation for the line is y0.1449 + 1.083r Return on Market 29. The beta for the common stock of Sears is: A) Negative ) o to .2 C).2 to .5 D).5 to 1.0 E) More than 1.0

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