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You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on
You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B. Which of the possible answers best describes the historical betas for A and B? Years Market Stock A Stock B 1 0.03 0.16 0.05 2 -0.05 0.20 0.05 3 0.01 0.18 0.05 4 -0.10 0.25 0.05 5 LO 0.06 0.14 0.05 Ob+1; bB = 0. b> 0; b = 1. bA b = 0; b = -1. < O b 0; bB = 0. Ob
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