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You observe that AT&T stock and the S&P 500 have the following weekly returns: Week AT&T return S&P 500 return 1 0.005 0.001 2 0.010
You observe that AT&T stock and the S&P 500 have the following weekly returns: Week AT&T return S&P 500 return 1 0.005 0.001 2 0.010 0.005 3 -0.003 -0.005 4 -0.005 -0.001 If this pattern of stock returns is typical of AT&T stock, and you calculated a beta against the S&P 500, which of the following is true?
AT&T's beta is positive. | ||
AT&T's beta is negative. | ||
AT&T's beta is zero. | ||
Cannot be determined from information given. |
You observe that AT&T stock and the S&P 500 have the following weekly returns: Week AT&T return S&P 500 return 1 0.005 0.001 2 0.010 0.005 3 -0.003 -0.005 4 -0.005 -0.001 If this pattern of stock returns is typical of AT&T stock, and you calculated a beta against the S&P 500, which of the following is true?
AT&T's beta is positive. | ||
AT&T's beta is negative. | ||
AT&T's beta is zero. | ||
Cannot be determined from information given. |
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