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 12345 Market 0.03 -0.05 0.01 -0.10 0.06 Stock A 0.16 0.20 0.18 0.25 0.14 Stock B 0.05 0.05 0.05 0.05 0.05

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 ? 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 ? bA>0;bB=1 bA>+1;bB=0. bA=0;bB=1 bA