The Beta of ABC Co

question 24

Multiple Choice

The beta of ABC Co. stock is the slope of

• A) the security market line.
• B) the characteristic line for a plot of returns on the S&P 500 versus returns on short-term Treasury bills.
• C) the arbitrage pricing line.
• D) the line of best fit for a plot of ABC Co. returns against the returns of the market portfolio for the same period.

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