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

question 36

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.

---

Definitions:

ACT Theory

A cognitive theory, short for Adaptive Control of Thought, which explains how the mind organizes knowledge and produces intelligent behavior.

Memory Stores

Components of the memory system responsible for retaining information over short-term, long-term, and intermediate durations.

Typical Members

Typical members refer to the most representative or usual examples within a category or group, often used to illustrate general characteristics or behaviors.

Atypical Members

Members of a category that do not conform to the typical characteristics or expectations of that category.