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  3. 21 which of the following statements is most likely false...

Question: 21 which of the following statements is most likely false...

Question details

Assume the risk free rate is 0.0%. The SP500 is considered the market. Six years of annual returns are provided in the table below. Use this information to help answer questions 21-22. SP500 Stock A Stock B 2013 80% 6.4% 4.8% 2014 4.0% 3.2% 2.4% 1 Year Returns 2015 -40.0% -32.0% -24.0% 2016 15.0% 12.0% 9.0% 2017 20.0% 16.0% 12.0% 2018 12.0% 9.6% 7.2%

21. Which of the following statements is most likely FALSE:

  1. The SP500 index has a higher beta than Stock B

  2. The SP500 index has a higher beta than Stock A

  3. Stock A has a higher beta than Stock B

  4. Stock A index has a beta of 0.80

  5. The SP500 index has a beta of 1.20

22. Over the past six years, which of the following statements is most likely TRUE:

  1. The SP500 index has the highest arithmetic average return, but the lowest geometric return

  2. The SP500 index has the highest arithmetic average return, while Stock A has the lowest geometric return

  3. The SP500 index has the highest arithmetic average return, while Stock B has the lowest geometric return

  4. The SP500 index has the lowest geometric average return, while Stock B has the highest arithmetic return

  5. The SP500 index has the lowest geometric average return, while Stock A has the highest arithmetic return

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