1. What is the CAPM beta?

a. 0.9

b. -0.9

c. 1

d. -1

e. 0

2. when the market moves down 10%, this stock on average tends to move (A) by (B)% fill in blanks.

a. (A) up, (B):10

b. (A) up, (B):9

c. (A)down, (B):10

d.(A)down (B):9

e. no sufficient info above.

CAPM beta =COV(RF1RM)/VAR(RM)= Find the CAPM beta of the following stock, where RE is stock return, RM is market return, RE is average of stock returns, RM is average of market returns, COV(RE,RM) is covariance between RE and RM, and VAR(RM) is variance of market returns