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scatter diagram

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You are given the following set of data:
Historical Rates of Return
Year NYSE Stock Y
1 4.0 % 2.5 %
2 14.3 19.7
3 19.0 12.0
4 - 14.7 - 10.0
5 - 26.5 - 16.3
6 37.2 33.9
7 23.8 5.8
8 - 7.2 2.1
9 6.6 14.2
10 20.5 23.5
11 30.6 20.0
Mean = 9.8 % 9.8 %
= 19.6 % 14.8 %
a. Construct a scatter diagram showing the relationship between returns on Stock Y and the market. Use a spreadsheet or a calculator with a linear regression function to estimate beta.
Select the correct graph.

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Solution Summary

This solution advises how to construct a scatter diagram, showing the relationship between returns on Stock Y and the market. Use a spreadsheet or a calculator with a linear regression function to estimate beta.

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