question archive "Estimate a stock's beta based on the following return information: Month 1: Stock + 1
"Estimate a stock's beta based on the following return information: Month 1: Stock + 1
Subject:FinancePrice:2.86 Bought8
"Estimate a stock's beta based on the following return information: Month 1: Stock + 1.5%, Market + 1.1%; Month 2: Stock + 2.0%, Market +1.4%; Month 3: Stock - 2.5%, Market - 2.0%." O Greater than 1.0 Less than 1.0 O Equal to 1.0 Indeterminate
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The Correct answer is greater than 1
The beta is a measure of risk which shows how much the stock price will move if there is any movement in the market index. In this case, we can see that the share price has increased more than the market index. Thus, We can conclude that the beta is greater than 1.
