You Have Developed Data Which Give (1) the Average Annual

question 77

Multiple Choice

You have developed data which give (1) the average annual returns on the market for the past five years, and (2) similar information on Stocks A and B.If these data are as follows, which of the possible answers best describes the historical betas for A and B?

• A) β_A > 0; β_B = 1
• B) β_A > +1; β_B = 0
• C) β_A = 0; β_B = −1
• D) β_A < 0; β_B = 0
• E) β_A < −1; β_B = 1

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Definitions:

Demand Requirements

The specific needs or quantities of products or services required by the market or a particular customer.

Qualitative Forecasting

The method of prediction based on non-quantifiable information such as expert opinions, industry trends, and qualitative comparisons.

Scenario Planning

A method used by organizations to visualize and plan for possible future conditions or events and how to respond to them.

Nominal Group Techniques

A structured method for group brainstorming that encourages contributions from everyone in the group and is used to generate and prioritize ideas or solutions.