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Below are some data on the percentage return on stock Z and on the market portfolio (M) in 5 consecutive years: X M 1 12

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Below are some data on the percentage return on stock Z and on the market portfolio (M) in 5 consecutive years: X M 1 12 6 2 -5 0 3 25 5 4 7 10 5 6 15 (a) Compute the beta on stock Z with respect to the market (to two decimal places) (b) What does this beta imply for the manner in which Z's returns vary as the market return varies

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