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An analyst has developed the following d...

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题目

An analyst has developed the following data for two companies: PNS Manufacturing (PNS) and ABC Travel (ABC). PNS has an expected return of 15 percent and a standard deviation of 18 percent. ABC has an expected return of 11 percent and a standard deviation of 17 percent. PNS's correlation with the market is 75 percent, while ABC's correlation with the market is 85 percent. If the market standard deviation is 22%, which of the following are the betas for PNS and ABC?

选项

A.Beta of PNS:0.66 Beta of ABC: 0.61

B.Beta of PNS:0.92 Beta of ABC: 1.10

C.Beta of PNS:0.61 Beta of ABC: 0.66

D.Beta of PNS:1.10 Beta of ABC: 0.92

答案

C

解析

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