Calculate Beta for Apple and Microsoft, using a characteristic line. Display the data points on a...

Calculate Beta for Apple and Microsoft, using a characteristic line. Display the data points on a graph and display the characteristic line.

	Yearly Returns	Microsoft	Apple	Market
Jan 2010 - Dec 2010	Year. 1	-0.34%	5.18%	14.93%
Jan 2011 - Dec 2011	Year. 2	-0.37%	7.93%	2.06%
Jan 2012 - Dec 2012	Year. 3	0.40%	5.15%	15.84%
Jan 2013 - Dec 2013	Year 4	2.81%	5.99%	32.21%
Jan 2014 - Dec 2014	Year. 5	1.91%	4.62%	13.53%
Jan 2015 - Dec 2015	Year. 6	1.75%	3.32%	1.34%
Jan 2016 - Dec 2016	Year. 7	1.37%	3.94%	11.80%
Jan 2017 - Dec 2017	Year. 8	2.72%	2.84%	21.69%
Jan 2018 - Dec 2018	Year. 9	1.41%	2.13%	-4.45%
Jan 2019 - Dec 2019	Year. 10	4.06%	5.58%	31.29%
Average Return		1.57%	4.67%	14.02%
Std Deviation		1.42%	1.69%	12.21%
Correlation with the market		0.61	0.29	1.00
Beta		0.07	0.04	1.00

Solutions

Expert Solution

y = 0.04x + 0.0411

Coefficient of x is 0.04, which is Apple's Beta.

y = 0.0705x + 0.0058

Coefficient of x is 0.0705, which is Microsoft's Beta.

Equations are in the graphs as well.

jeff jeffy answered 2 years ago

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