You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B. Which of the possible answers best describes the historical betas for A and B? Year Market Stock A Stock B
2013 0.03 -0.16 0.05
2014 -0.05 0.20 0.05
2015 0.01 -0.03 0.05
2016 -0.10 0.25 0.05
2017 0.06 -0.18 0.05
A. βA > 0; βB = 1
B. βA > 1; βB = 0
C. βA = 0; βB = -1
D. βA < 0; βB = 0

answer; test-retest;

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%

answer; institution;

answer decisions made by individual households and firms;