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Calculate Beta for Apple and Microsoft, using a characteristic line. Display the data points on a graph and display the characteristic line. Year Microsoft Apple
- Calculate Beta for Apple and Microsoft, using a characteristic line. Display the data points on a graph and display the characteristic line.
Year Microsoft Apple Market Jan 2010 - Dec 2010 1 -0.34% 3.85% 14.93% Jan 2011 - Dec 2011 2 -0.37% 2.09% 2.06% Jan 2012 - Dec 2012 3 0.40% 2.87% 15.84% Jan 2013 - Dec 2013 4 2.81% 0.38% 32.21% Jan 2014 - Dec 2014 5 1.91% 3.05% 13.53% Jan 2015 - Dec 2015 6 1.75% -0.45% 1.34% Jan 2016 - Dec 2016 7 1.37% 1.24% 11.80% Jan 2017 - Dec 2017 8 2.72% 3.41% 21.69% Jan 2018 - Dec 2018 9 1.41% -0.33% -4.45% Jan 2019 - Dec 2019 10 4.06% 5.89% 31.29% Average Return 1.57% 2.20% 14.02% Std Deviation 1.42% 2.02% 12.21% Correlation with the market 0.61 0.57 1.00 Beta 0.07 0.09 1.00 Beta Calculation
Run a regression line of past returns on Stock I versus returns on the market. The regression line is the characteristic line. Year rM ri 1 2 3 4 5 6 7 8 9 10
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