Using information found in the attached excel file, How does the risk of Stock D compare to the risk of the Market?

Multiple Choice

A)None of the above

B) Stock D is half as risky as the market, denoted by a calculated Beta of 0.5, which is half as risky as the market beta of 1.0

C) Stock D carries the same risk as the market; Both stock B and the market have a beta of 1.0

D) Stock D is a perfect hedge against market risk, denoted by a calculated Beta of -1.0; This stock will rise 1 when the market falls 1.

E) Stock D is twice as risky as the market, denoted by a calculated Beta of 2.0, which is twice as risky as the market beta of 1.0