the correct scatter diagram and linear regression curve showing the relationship between returns on 5 tock Y and the market. Use a spreadsheet or a calculator with a linear regression function to estimate beta. Do not round intermediate calculations. Round your answer to two decimal places. b. Give a verbal interpretation of what the regression line and the beta coefficient show about Stock Y's volatility and reiative fisk as compared with those of other stocks. Do not round intermediate calculations. Round your answers to the nearest whole number: Stock Y is about Q. percent as volatile as the merket; thus, its relative risk is about (3) percent of that of an average firm. c. Suppose the regression line were exactlyps shown by your graph from part a but the scatter plot of points was more spread out. 1. How would this affect the firm's risk if the stock is held in a one-asset portfollo and if the CapM holds exactiy? Total risk. 2. How would this affect the actual risk premium on the stock if the CAPM holds exactly? The risk premium under the CAPM d. Suppose the regression line were downward sloping and the beta coefficient were negative. 1. What would this imply about stock Y's relative risk? stock r is relative risk 2. What would this imply about stock Y's correlation with the market? the correct scatter diagram and linear regression curve showing the relationship between returns on 5 tock Y and the market. Use a spreadsheet or a calculator with a linear regression function to estimate beta. Do not round intermediate calculations. Round your answer to two decimal places. b. Give a verbal interpretation of what the regression line and the beta coefficient show about Stock Y's volatility and reiative fisk as compared with those of other stocks. Do not round intermediate calculations. Round your answers to the nearest whole number: Stock Y is about Q. percent as volatile as the merket; thus, its relative risk is about (3) percent of that of an average firm. c. Suppose the regression line were exactlyps shown by your graph from part a but the scatter plot of points was more spread out. 1. How would this affect the firm's risk if the stock is held in a one-asset portfollo and if the CapM holds exactiy? Total risk. 2. How would this affect the actual risk premium on the stock if the CAPM holds exactly? The risk premium under the CAPM d. Suppose the regression line were downward sloping and the beta coefficient were negative. 1. What would this imply about stock Y's relative risk? stock r is relative risk 2. What would this imply about stock Y's correlation with the market