Suppose that you were given the following data for past excess quarterly returns for Markese Imports, Inc., and for the market portfolio:

On the basis of this information, graph the relationship between the two sets of excess returns and draw a characteristic line. What is the approximate beta7What can you say about the systematic risk of the stock, based on past experience?

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EXCESS EXCESS RETURNS MARKET PORTFOLIO 0.05 0.10 0.06 0.10 0.02 0.03 0.07 0.01 0.08 0.00 0.13 0.04 0.01 0.09 0.14 0.04 0.15 0.06 0.11 0.05 0.03 0.01 0.03 0.04 QUART RETURNS ER MARKESE 0.04 0.05 0.04 0.05 0.02 0.00 0.02 0.01 0.02 0.04 0.07 0.01 0.01 0.06 0.06 0.02 0.07 0.02 0.04 0.03 0.01 0.01 0.01 0.02 10 12 13 14 15 16 17 18 19 20 21 24