Determine the Beta for Stock A based on the following set of returns.Of course, the reliability of a Beta calculated with only four data points may be low.Interpret the Beta that you have calculated.
$$\begin{array} { | c | c | }
\hline \text { Stock A Returns } & \text { Market Returns } \
\hline 6.0 \% & 5.0 \% \
\hline 15.0 \% & 12.5 \% \
\hline - 4.2 \% & - 3.5 \% \
\hline 9.0 \% & 7.5 \% \
\hline
\end{array}$$

Question

Determine the Beta for Stock A based on the following set of returns.Of course, the reliability of a Beta calculated with only four data points may be low.Interpret the Beta that you have calculated.
 $$\begin{array} { | c | c | } 
\hline \text { Stock A Returns } & \text { Market Returns } \
\hline 6.0 \% & 5.0 \% \
\hline 15.0 \% & 12.5 \% \
\hline - 4.2 \% & - 3.5 \% \
\hline 9.0 \% & 7.5 \% \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Determine the Beta for Stock A based on the following set of returns.Of course, the reliability of a Beta calculated with only four data points may be low.Interpret the Beta that you have calculated.
 $$\begin{array} { | c | c | } 
\hline \text { Stock A Returns } & \text { Market Returns } \
\hline 6.0 \% & 5.0 \% \
\hline 15.0 \% & 12.5 \% \
\hline - 4.2 \% & - 3.5 \% \
\hline 9.0 \% & 7.5 \% \
\hline
\end{array}$$

Determine the Beta for Stock a Based on the Following