Based on the Following Information, Make an Estimate of the Stock's

question 89

Multiple Choice

Based on the following information, make an estimate of the stock's Beta: Month 1 = Stock +1.5%, Market +1.1%; Month 2 = Stock +2.0%, Market +1.4%; Month 3 = Stock -2.5%, Market -2.0%.

• A)Beta is greater than 1.0
• B)Beta is less than 1.0
• C)Beta equals 1.0
• D)There is no consistent pattern of returns

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