Answered: If a stock consistently goes down (up)…

If a stock consistently goes down (up) by 1.6% when the market portfolio goes down (up) by 1.2%, then its beta: A) Equals 1.04. B) Equals 1.24. C) Equals 1.33. D) Equals 1.40

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

11. If a stock consistently goes down (up) by 1.6% when the market portfolio goes down (up) by 1.2%, then its beta:

A) Equals 1.04.
B) Equals 1.24.
C) Equals 1.33.
D) Equals 1.40.

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