Question: please explain Problem 7 You estimated a regression model using annual returns of Amazon (as a dependent variable) and of the market (as an independent
please explain
Problem 7 You estimated a regression model using annual returns of Amazon (as a dependent variable) and of the market (as an independent variable). The beta this regression is 1.2. We can conclude that: A) When the market return is +10%, Amazon's return is, in the average, +12% B) When the market return is +1%, Amazon's return is, in the average, +12% C) When the market return is +10%, Amazon's return is, in the average, +20% D) Amazon has no systematic risk E) Amazon has no unsystematic risk
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