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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.

    © BrainMass Inc. brainmass.com October 10, 2019, 1:38 am ad1c9bdddf
    https://brainmass.com/economics/risk-analysis/scatter-diagram-characteristic-lines-342552

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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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