# scatter diagram

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.

https://brainmass.com/economics/risk-analysis/scatter-diagram-characteristic-lines-342552

#### 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.

$2.19