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?
A)Ford's beta appears to be positive.
B)Ford's beta appears to be negative.
C)Ford's beta appears to be zero- there is no apparent relation between its return and the S&P return.
D)Ford's beta appears to be highly negative.
E)Beta has nothing to do with the relationship seen in this scatterplot.

Question

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? 
A)Ford's beta appears to be positive. 
B)Ford's beta appears to be negative. 
C)Ford's beta appears to be zero- there is no apparent relation between its return and the S&P return. 
D)Ford's beta appears to be highly negative. 
E)Beta has nothing to do with the relationship seen in this scatterplot.

Quizplus · Accepted Answer

Based on the scatterplot, it appears that Ford's weekly returns move in the same direction as the S&P 500 returns. This suggests that Ford's beta against the S&P 500 is positive, as changes in the S&P 500 returns are likely to be associated with changes in Ford's returns in the same direction.

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