In: Finance
An attempt to relate bond yields from 1968-1991 to the Standard and Poor's 500 found
(a) no relationship.
(b) investment grade bonds had the largest beta.
(c) lowest rated bonds had the largest beta.
(d) over 90% of bond yield variance is explained by the stock
market variance.
An attempt to relate bond yields from 1968-1991 to the Standard and Poor's 500 found lowest rated bonds had the largest beta