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You have developed data which give (1) the average annual returns on the market for the past five years, and (2) similar information on Stocks

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You have developed data which give (1) the average annual returns on the market for the past five years, and (2) similar information on Stocks A and B. If these data are as follows, which of the possible answers best describes the historical betas for A and B ? (Note: You do not have to actually calculate betas to arrive at the correct answer) The beta for stock A is greater than zero and the beta for stock B is 1 . The beta for stock A is greater than 1 and the beta for stock B is zero. The beta for stock A is zero and the beta for stock B is 1. The beta for stock A is less than 1 and the beta for stock B is 1 . The beta for stock A is less than zero and the beta for stock B is zero

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