Fishing supply company, Outside Tackle, has its returns graphed against the market returns for a 5 year period. The line that has the best fit for the data has the formula y = .1254 + 1.265x. What information can we derive from this?
◦ The beta of Outside Tackle is .1254.
◦ The systematic risk of Outside Tackle is less than average for the market.
◦ The beta for Outside Tackle is 1.265.
◦ Outside Tackle has posted better returns than the market for this time period.