Question
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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