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Graphical derivation of beta A firm wishes to estimate graphically the betas for two assets. A and B. It has gathered the return data shown
Graphical derivation of beta A firm wishes to estimate graphically the betas for two assets. A and B. It has gathered the return data shown in the following table for the market portfolio and for both assets over the last 10 years. 2006-2015. On a set of "market return (x axis)-asset return (y axis)" axes, use the data given to draw the characteristic line for asset A and for asset B. Use the characteristic lines from part a to estimate the betas for assets A and B. Use the betas found in part b to comment on the relative risks of assets A and B
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