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Use the information below to help answer questions 18-19. The SP500 is considered the market. Six years of annual returns are provided in the table
Use the information below to help answer questions 18-19. The SP500 is considered the market. Six years of annual returns are provided in the table below. SP500 Stock A Stock B 2013 8.0% 6.4% 4.8% 1 Year Returns 2014 2015 4.0% -40.0% 3.2% -32.0% 2.4% -24.0% 2016 15.0% 12.0% 9.0% 2017 20.0% 16.0% 12.0% 2018 12.0% 9.6% 7.2% 18. Which of the following statements is most likely FALSE: a. The SP500 index has a higher beta than Stock B b. The SP500 index has a higher beta than Stock A c. Stock A has a higher beta than Stock B d. Stock A index has a beta of 0.80 e. The SP500 index has a beta of 1.20 19. Over the past six years, which of the following statements is most likely TRUE: a. The SP500 index has the highest arithmetic average return, but the lowest geometric return b. The SP500 index has the highest arithmetic average return, while Stock A has the lowest geometric return c. The SP 500 index has the highest arithmetic average return, while Stock B has the lowest geometric return d. The SP500 index has the lowest geometric average return, while Stock B has the highest arithmetic return e. The SP500 index has the lowest geometric average return, while Stock A has the highest arithmetic return
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