R (Stock) y = 1.1499x + 0.0002 CCE R2 = 0.5515 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% - 10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% R (S&P 500) R(Stock) y = 0.4775x + 0.0251 BIIB R2 = 0.0297 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% - 15.0% -20.0% -25.0% -8.0% 6.0% 4.0% - 2.0% 0.0% 2.0% 4.0% 6.0% 8.096 R(S&P 500) Based on the 2 graphs above, which stock returns would be more accurate to predict based on the S&P 500 returns and why? Can not tell based on the information provided BIIB returns because slope of the regression line is smaller BIIB returns because Beta estimate is smaller CCE returns, because the dispersion of the returns around regression line is smaller CCE returns, because slope of the regression line is larger