Question: Company Beta coefficient A 1 B 2 C 0.5 D 0 E -0.5 F -1 G -2 The table shows the beta coefficients of shares

Company Beta
coefficient
A 1
B 2
C 0.5
D 0
E -0.5
F -1
G -2

The table shows the beta coefficients of shares for a few listed companies.

With respect to the market return:

a)Returns of company B are : perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated

b)Returns of company D are :perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated

c)Returns of company E are :perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated

d)Returns of company G are : perfectly positively correlated/positively correlated/uncorrelated/negatively correlated/ perfectly negatively correlated

e)Select all companies whose returns will always move in the opposite direction to the market:

Company A Company B Company C Company D Company E Company F Company G None of the above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!