An analyst computes a beta with a low standard error. This implies that

Select one:

a. this particular beta is more reliable than most.

b. this stock responds less to market changes than most stocks.

A companys capital structure is 4 million Euros in debt and 16 million Euros in equity

If the beta of its debt is 0.25 and the beta of its equity is 1.50, what is the companys asset beta?

Select one:

a. 0.75

b. 1.25

c. 1.10

d. 1.19

c. too few observations were used to compute this particular beta.

d. this particular beta has little meaning.