The Historical Nominal Returns for Stock a Were -8 Percent

question 10

Multiple Choice

The historical nominal returns for stock A were -8 percent, +10 percent, and +22 percent. The nominal returns for the market portfolio were +6 percent, +18 percent, and 24 percent during this same time. Calculate the beta for stock A.

• A)1.64
• B)0.61
• C)1.00
• D)0.50