You Observe That Telstra Shares and the S&P/ASX 200 Index

question 33

Multiple Choice

You observe that Telstra shares and the S&P/ASX 200 index have the following weekly returns: If this pattern of returns is typical of Telstra shares, and you calculated a beta against the S&P/ASX 200, which of the following is true?

• A)Telstra's beta is zero.
• B)Telstra's beta is positive.
• C)Telstra's beta is negative.
• D)Cannot be determined from information given.