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Which of the following are true regarding stock betas? a. Beta is a measurement of stock...

Which of the following are true regarding stock betas?

a. Beta is a measurement of stock returns vs. market returns

b. Beta is a measurement of stock returns vs. bond returns

c. An Index Fund, by definition, has a Beta of 1.0

d. Answers a and b

e. Answers a and c

PLEASE EXPLAIN YOUR CHOICE

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Answer #1

Option E is correct

Beta is measured by comparing stock return and market return and as index return equals market return, for index beta is 1.

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