Question
6-6. If we were to graph the returns of a stock against the returns of the S&P 500 Index, and the points did not follow
6-6. If we were to graph the returns of a stock against the returns of the S&P 500 Index, and the points did not follow a very ordered pattern, what could we say about that stock? If the stocks returns tracked the S&P 500 returns very closely, then what could we say?
6-7. Over the past eight decades, we have had the opportunity to observe the rates of return and the variability of these returns for different types of securities. Summarize these observations.
Keown, Arthur J.; Martin, John D.; Petty, J. William. Foundations of Finance (p. 219). Pearson Education. Kindle Edition.
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