Question
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
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?
| Year | Market | Stock A | Stock B |
| 2013 | 0.03 | -0.16 | 0.05 |
| 2014 | -0.05 | 0.20 | 0.05 |
| 2015 | 0.01 | -0.03 | 0.05 |
| 2016 | -0.10 | 0.25 | 0.05 |
| 2017 | 0.06 | -0.18 | 0.05 |
| A > 0; B = 1 |
| A > 1; B = 0 |
| A = 0; B = -1 |
| A < 0; B = 0 |
| More information is required. |
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International Finance Exchange Rates And Financial Flows In The International Financial System
Authors: Heather D. Gibson
1st Edition
0582218128, 978-0582218123
