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Use the following data to explore the risk-return relation and the concept of beta for Apple stock, Alphabet (Google) stock, and the S&P 500 market
Use the following data to explore the risk-return relation and the concept of beta for Apple stock, Alphabet (Google) stock, and the S&P 500 market index:
Year | Apple Stock Price | Alphabet Stock Price | S&P 500 Market Index |
2017 | $174.09 | $1,072.01 | 2,601.42 |
2016 | $115.82 | $807.80 | 2,238.83 |
2015 | $105.26 | $765.84 | 2,043.94 |
2014 | $113.99 | $521.51 | 2,058.90 |
2013 | $80.01 | $559.76 | 1,848.36 |
2012 | $72.80 | $358.17 | 1,426.19 |
Part 1: Risk and Beta
- Make a scatter plot of stock returns (y-axis) against market returns (x-axis) for both Apple and Alphabet stock in one plot. Add a linear trend line to the scatter plot for each stock and include the equation on the chart (Select data point and right click then select "add trendline" and choose a "linear" trend and select "display equation on chart"). Label the y-axis, x-axis, legend, and chart title (9 Points)
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