This is a Beta Estimate Exercise. I need some help with the last two questions. I did the regression analysis but couldn't get it to copy into this e-mail neatly and wasn't sure how to upload a document.

Year Stock Z S&P 500

1 10% 5%

2 -15 -10

3 15 10

4 5 0

5 -5 -10

Perform a Regression on this data.

Follow these steps with the data you entered above.

Enter returns on stock Z as y variable range - DONE

Enter returns on S&P 500 as x variable range - DONE

Plot a scatter diagram from the returns given - (Would you assume from the regression analysis or from the info above?)

Estimate the beta for stock Z - Again, I would assume this is from the Regression Analysis - if so, the result is 1.28.

What type of relationship between the two variables is predicted from this equation? HELP

If the return on the S&P 500 index is expected to be 10% over the next year, using the regression equation what is the expected return on stock Z over the same period? HELP

Thanks in advance!