You Observe That AT&T Stock and the S&P 500 Have

question 49

Multiple Choice

You observe that AT&T stock and the S&P 500 have the following weekly returns:
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?

• A) AT&T's beta is negative.
• B) AT&T's beta is zero.
• C) AT&T's beta is positive.
• D) AT&T's beta is highly negative.
• E) Beta cannot be calculated from this data.

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Definitions:

Private Accountants

Accountants who work exclusively for one company, handling its financial records and statements internally.

Bookkeeping

The systematic recording, organizing, and maintaining of financial transactions of a business, which is a subset of the accounting process.

Accounting

The systematic process of recording, summarizing, analyzing, and reporting financial transactions of a business.

Quantified

Measured, expressed, or characterized in terms of quantity.