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6. Given the following retrospective data for year-to-year changes (%) in the NASDAQ index, along with the same metric for an individual stock of one

6. Given the following retrospective data for year-to-year changes (%) in the NASDAQ index, along with the same metric for an individual stock of one of its own listings, Apple (AAPL), please answer the following questions:

A) Develop a simple linear equation for the model of AAPL as a function of NASDAQ percent change, including the R2 parameter. [5 pts]

B) Calculate the Beta metric for AAPL relative to the NASDQ market. [5 pts]

C) Briefly state your interpretation of these data. [5 pts]

Annual % Change

Year NASDAQ AAPL*

2009

19.05

13.28

2010

21.16

55.00

2011

3.49

36.26

2012

8.49

68.73

2013

30.37

-19.40

2014

16.24

38.59

2015

8.93

15.33

2016

1.09

2.66

2018

34.52

95.23

2019

11.52

1.24

2020 33.21 107.29

*Note these data were recorded in September of each respective year

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