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What is the most likely explanation for a 20.0% return on a stock with a beta of 1.0 in a month when the market returned 10.0%
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What is the most likely explanation for a 20.0% return on a stock with a beta of 1.0 in a month when the market returned 10.0%

User Alexander Zwitbaum
by
3.8k points

1 Answer

5 votes

Answer:

favorable firm- specific news are reported

Step-by-step explanation:

The following information is given

Return on the stock is 20%

Beta is 1%

And, the market return is 10%

Based on the above information

All the above represent the positive percentage so this represent that the firm is favorable so for this the particular news would be recorded

hence, the same is relevant

User Arun Tyagi
by
3.2k points
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