4. Based on the following information, make an estimate of the stock's Beta: Month 1 = Stock +

1.5%, Market + 1.1%; Month 2 = Stock + 2.0%, Market + 1.4%; Month 3 = Stock -2.5%, Market -

2.0%.

Multiple Choice

a.Beta equals 1.0

b.Beta is less than 1.0

c.Beta is greater than 1.0

d.there is no consistent pattern of returns.