(Calculating beta, regression) The table below provides the annual rates of return on ABC Corp., XYZ Corp. and the market portfolio M

a. Calculate the β_XYZ and the β_ABC. Use the formula

b. Which company’s returns are better explained by the market’s returns?
Explain by regressing each company’s returns on the market returns (see Chapter 9).

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A B C D Market ABC XYZ 3456780 Year Portfolio Corp. Corp. 1 11.90% 14.40% 121.20% 2 0.40% -22.20% -33.90% 3 26.90% 47.50% 3.70% 4 -8.60% 7.70% 3.10% 5 22.80% 42.80% 17.20% 6 16.50% 30.70% -16.90% 10 7 12.50% 11.40% -32.80% 11 8 -10.06% -32.50% -30.40% 12 9 23.90% 30.50% 114.00% 13 10 11.10% 1.80% -3.70% 14 11 -8.50% -6.20% -33.00% 15 16 56 12 3.90% 22.30% -33.20% 13 14.30% 4.30% 21.60% 17 14 19.10% 6.50% 17.80% 18 15 -14.70% -37.80% 7.50% 19 16 -26.50% -27.60% -62.30% 20 17 37.30% 97.10% 65.40% 21 18 23.80% 45.85% -28.02% 22 19 -7.15% -11.25% -6.33% 23 23 20 12.16% -4.70% 26.67%