USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

	Rates of Return
Year	RA Computer	Market Index
1	13	17
2	9	15
3	-11	6
4	10	8
5	11	10
6	6	12

1) Compute the beta for RA Computer using the historic returns presented above:

0.7715

1.2195

1.3893

1.1023

-0.7715

2) Refer to Exhibit 8-1. Compute the correlation coefficient between RA Computer and the Market Index:

-0.32

0.78

0.66

0.58

0.32

3) Refer to Exhibit 8-1. Compute the intercept of the characteristic line for RA Computer:

-9.41

11.63

4.92

-4.92

-7.98