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which of the following is true? 6) _______ A) AT&T's beta is zero. B) AT&T's beta is positive. C) AT&T's beta is negative. D) Cannot be determined from information given.

which of the following is true? 6) _______ A) AT&T's beta is zero. B) AT&T's beta is positive. C) AT&T's beta is negative. D) Cannot be determined from information given.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 22P
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You observe that AT&T stock and the S&P 500 have the following weekly returns: Week AT&T return S&P 500 return 1 0.005 0.001 2 0.010 0.005 3 -0.003 -0.005 4 -0.005 -0.001 If this pattern of stock returns is typical of AT&T stock, and you calculated a beta against the S&P 500, which of the following is true? 6) _______

A) AT&T's beta is zero.

B) AT&T's beta is positive.

C) AT&T's beta is negative.

D) Cannot be determined from information given.

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