You Observe That Telstra Shares and the S&P/ASX 200 Index

question 96

Multiple Choice

You observe that Telstra shares and the S&P/ASX 200 index have the following weekly returns: $$\begin{array} { c c c } \text { Week } & \text { Telstra return } & \text { S\&P/ASX 200 return } \\\hline 1 & 0.005 & 0.001 \\2 & 0.010 & 0.005 \\3 & - 0.003 & - 0.005 \\4 & - 0.005 & - 0.001\end{array}$$ If this pattern of returns is typical of Telstra shares, and you calculated a beta against the S&P/ASX 200, which of the following is true?

• A) Telstra's beta is positive.
• B) Telstra's beta is negative.
• C) Telstra's beta is zero.
• D) Cannot be determined from information given.

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Definitions:

Assortative Mating

When individuals tend to mate with people who are like themselves in some respect.

Comorbidity

The common situation in which an individual meets the criteria for more than one diagnostic condition. See also overlap.

Genetic Load

The presence of disadvantageous genetic mutations in a population, which can reduce its overall fitness.

Heterotypic Continuity

An underlying (developmental) process or impairment stays the same, but how it is manifested may be different (e.g., prediction of a disorder by another disorder); in homotypic continuity, by contrast, the manifestations stay the same, but the underlying process changes.