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 Which of the possible answers best describes the historical

betas for A and B?

Years

1

2

3

4

5

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