Question: Question 5 (2.5 points) You have developed data which give (1) the average annual returns on the market for the past five years, and (2)

Question 5 (2.5 points) You have developed data which give (1) the average annual returns on the market for the past five years, and (2) similar information on Stocks A and B. If these data are as follows, which of the possible answers best describes the betas for A and B? Years Market Stock A Stock B 1 0.03 0.16 0.05 2 -0.05 0.20 0.05 3 0.01 0.18 0.05 A -0.10 0.25 0.05 5 0.06 0.14 0.05 1) BA > 0; BB = 1 O2) BA > +1; BB = 0 O 3) BA = 0; BB = -1 O4) BA

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