The annual returns for three years for stock B were 0 percent, 10 percent, and 26...

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Finance

The annual returns for three years for stock B were 0 percent,10 percent, and 26 percent. Annual returns for three years for themarket portfolio were +6 percent, 18 percent, and 24 percent.Calculate the beta for the stock.
A. 0.75
B. 1.36
C. 1.00
D. 0.74
please do not use excel ti solve the answer, thx:)

Answer & Explanation Solved by verified expert

3.7 Ratings (386 Votes)

B ReturnMarket Return0610182624The formula to calculate beta for the stock B isB CovBMM2where CovBM is the covariance between the stock B return andthe See Answer

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The annual returns for three years for stock B were 0 percent,10 percent, and 26 percent. Annual returns for three years for themarket portfolio were +6 percent, 18 percent, and 24 percent.Calculate the beta for the stock.A. 0.75B. 1.36C. 1.00D. 0.74please do not use excel ti solve the answer, thx:)