Imagine you wish to estimate the betas for two investments, A and B. You have gathered the following return data for the market and for each of the investments over the past 10 years, 2008-2017.

a. On a set of market return (x-axis)-investment return (y-axis) axes, use the data to draw the characteristic lines for investments A and B on the same graph.
b. Use the characteristic lines from part a to estimate the betas for investments A and B.
c. Use the betas found in part b to comment on the relative risks of investments A and B.

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Historical Returns Investment Market 6% 2% Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 11% 8% -49% 3% 0% 19% 14% 18% 12% 17% 16% 11% 10% 3% 3% 30% 22% 29% 19% 26% -13% -4% -8% 16% 10% 15% 8% 13%