Fishing supply company, Outside Tackle, has its returns graphed against the market returns for a 5 year period. The line that has the best fit for the data has the formula y = .1254 + 1.265x. What information can we derive from this?
A) The beta of Outside Tackle is .1254.
B) The systematic risk of Outside Tackle is less than average for the market.
C) The beta for Outside Tackle is 1.265.
D) Outside Tackle has posted better returns than the market for this time period.
C
You might also like to view...
When providing feedback, focusing comments on the message, not the person who created it, is an example of what?
A) Verifying understanding B) Keeping feedback impersonal C) Being specific D) Focusing on controllable behavior E) Discussing improvements rather than flaws
Due to the changing economic geography, many of tomorrow's economic opportunities are most likely to be found in the:
A. rich industrialized nations of the world like Great Britain and Germany. B. centrally planned economies of the communist world. C. United States. D. developing nations of the world such as China, India, and Brazil. E. countries that are currently not members of the World Trade Organization.