Have the Following Data on (1) the Average Annual Returns

question 22

Multiple Choice

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?

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

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Definitions:

Gonads

Glands responsible for producing sex hormones and gametes, playing a crucial role in reproductive health and behavior.

Adrenal Glands

Small glands located on top of each kidney that produce hormones such as adrenaline and cortisol, which help regulate metabolism, immune system, blood pressure, and stress responses.

Pineal Gland

A small endocrine gland in the brain that produces melatonin, regulating sleep and wake patterns.

Pituitary Gland

A small endocrine gland located at the base of the brain that produces hormones regulating growth, metabolism, and reproductive functions.