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Consider the Following Average Annual Returns for Stocks a and B

Question 25

Multiple Choice

Consider the following average annual returns for Stocks A and B and the Market.Which of the possible answers best describes the historical betas for A and B?
Consider the following average annual returns for Stocks A and B and the Market.Which of the possible answers best describes the historical betas for A and B? A) bA > +1; bB = 0. B) bA = 0; bB = -1. C) bA < 0; bB = 0. D) bA < -1; bB = 1. E) bA > 0; bB = 1.


A) bA > +1; bB = 0.
B) bA = 0; bB = -1.
C) bA < 0; bB = 0.
D) bA < -1; bB = 1.
E) bA > 0; bB = 1.

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