You observe the following scatterplot of Ford's weekly returns against the S&P 500.Which of the following statements is true about Ford's beta against the S&P 500?

Question

Quizplus · Accepted Answer

Looking at the scatterplot, we can see that as the S&P 500 returns increase, Ford's weekly returns also generally increase. This positive relationship suggests that Ford's beta against the S&P 500 is positive. Beta measures the sensitivity of an asset's returns to changes in the market, and a positive beta suggests that the asset tends to move in the same direction as the market.

You Observe the Following Scatterplot of Ford's Weekly Returns Against