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7. Compute the sample mean returns for Y and M. 8. Compute the sample standard deviations for Y and M. 9. Compute the sample
7. Compute the sample mean returns for Y and M. 8. Compute the sample standard deviations for Y and M. 9. Compute the sample covariance between returns for Y and M. 10. Compute the sample beta factor of stock Y 11. What is the equation for stock Y's characteristic line? 12. Compute the sample correlation coefficient between the returns of Y and M. 13. Compute the sample coefficient of determination associated with stock Y's char- acteristic line. What does this statistic tell us? 14. Compute the sample residual variance associated with stock Y's characteristic line. 15. Explain what the residual variance associated with a stock's characteristic line is supposed to tell you.
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