You have entered the following information on a spreadsheet:
-Refer to the information above. Which of the following commands would you use to calculate the market beta of Stock A?

Question

You have entered the following information on a spreadsheet: 
-Refer to the information above. Which of the following commands would you use to calculate the market beta of Stock A?

Quizplus · Accepted Answer

To calculate market beta, we need to use the slope function, which measures the relationship between two sets of data (in this case, the returns of Stock A and the returns of the market). The slope function will give us the beta coefficient, which represents the sensitivity of Stock A to changes in the market. The command slope(b2:b6, c2:c6) calculates the slope of the linear regression line between the two sets of data, which is equivalent to the market beta of Stock A.

You Have Entered the Following Information on a Spreadsheet