A two-for-one stock split will result in:
A) the firm acquiring new assets.
B) a decrease in the stock price, but an increase in shareholder wealth.
C) an increase in the stock price, and an increase in shareholder wealth.
D) a decrease in the stock price and no change to shareholder wealth.
Based on the following information, make an estimate of the stock's beta:
Month 1 = Stock +1.0%, Market +1.1%
Month 2 = Stock +1.2%, Market +1.4%
Month 3 = Stock -1.5%, Market -2.0%.
Choose option below:
a) Beta is greater than 1.0.
b) Beta is less than 1.0.
c) Beta equals 1.0.
d) There is no consistent pattern of returns.