easy · Quantitative Finance prob-stats

If you are using OLS to estimate a stock's beta by regressing its excess returns on market excess returns, and you find the sample covariance is 0.016 and the sample variance of market returns is 0.010, what is the estimated beta?

  1. 0.00016
  2. 0.625
  3. 1.26
  4. 1.60

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