The following are data on annual inflation and stock returns. Run a regression analysis of the data

Question:

The following are data on annual inflation and stock returns. Run a regression analysis of the data and determine whether there is a linear relationship between inflation and total return on stocks for the periods under study.

Inflation (%) Total Return on Stocks (%)

1 ................–3

2 ................36

12.6 ..............12

–10.3 ...............–8

0.51 ...............53

2.03 ...............–2

–1.8 ...............18

5.79 ...............32

5.87 ...............24

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...