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Suppose that stock A and B and the market (as measured by the S&P 500 Index) - produce the following returns over the last five
Suppose that stock A and B and the market (as measured by the S&P 500 Index) - produce the following returns over the last five years.
Which of the following statements regarding the beta of these stocks would be true? Hint: No calculations are needed here just a good observation of the numbers.
a) f3A
b) f3A > +1; f3B = O.
c) f3A = 0; I3B = -1.
d) (3A > 0; (3B = 1.
e) PA
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