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

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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? 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<sub>A</sub> > 0; β<sub>B</sub> = 1 B)  β<sub>A</sub> > +1; β<sub>B</sub> = 0 C)  β<sub>A</sub> = 0; β<sub>B</sub> = −1 D)  β<sub>A</sub> < 0; β<sub>B</sub> = 0 E)  β<sub>A</sub> < −1; β<sub>B</sub> = 1

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Definitions:

Price of Capital

The cost of accessing funds or resources for investment purposes, often influenced by interest rates, market demand, and availability of capital.

Occupations

The various types of jobs or professions individuals engage in to earn income.

Percentage Increases

The calculation of the rise in a quantity or value expressed as a percentage of its previous value.

Engineering Professions

Fields of work that apply scientific principles, mathematics, and ingenuity to develop technological solutions and buildings, ranging from civil to electrical engineering.

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