multiple choice fthe line measuring a stocks historie return

multiple choice.

fthe line measuring a stocks historie returns against the market\'s nestoric retums has a sope greater han 10 then the ns against the market\'s historic returns has a slope greater than 10,then the Multiple Choice stock is currently underprced market risk premium Is increasing. stock hes a significenit amount of specific risk stock hos a bate sacesesing to has a beten eces

Solution

Ans is option 4 - stock has a beta exceeding 1.0

the line is nothing but the beta of the stock, which has values of stock returns versus market historic returns.