In: Finance
The possible outcomes for the returns on Stock X and the returns on the market portfolio have been estimated as follows:
Scenario |
Stock X |
Market portfolio |
1 |
-3% |
6% |
2 |
14% |
12% |
3 |
22% |
18% |
Calculate the market beta for Stock X. Round your answer to the nearest tenth.
A) 2.1 |
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B) 0.7 |
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C) 1.0 |
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D) none of the above |