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Please include trend line equations on graph & work/formulas for other calculations! G3 P5.15 Imagine you wish to estimate the betas for two investments, A

Please include trend line equations on graph & work/formulas for other calculations! image text in transcribed
G3 P5.15 Imagine you wish to estimate the betas for two investments, A and B. You have gathered e following return data for the market and for each of the investments over the past 10 years, 2008-2017. Historical Returns Investment Year 2008 2009 2010-4% Market 6% 2% 11% 8% -4% 16% 11% 10% 3% 3% 0% 3% 30% 2012 2013 2014 16% 12% 2015 2016 2017 -8% 16% 10% 096 19% 14% 18% 22% 29% 19% 8% 13% 17% 26% a. On a set of market return (ax-axis)-investment return (y-axis) axes, use , draw the characteristic lines for investments A and B on the same graph. b. Use the characteristic lines from part a to estimate the betas for invest ments A and B. c. Use the betas f ound in part b to comment on the relative risks of investments A and B

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