MARIMARQUESTION 1The following table provides the rate of returns on IBM and DELL from 2019 to 2023:YearReturn on IBMReturn on DELL2019141820222023202012121. Compute Return per Unit of Risk Criterion (RRC) for each stock;2. Would you invest in IBM or DELL? Why?P12320211020QUESTION 2The following table contains yearly data on theprice of beef ($/Kg) and the quantity demandedfor beef (Kg) from 2021 to 2023:Year20210642202214122023158Where:Q: quantity demanded for beef (Lbs);P: price of beef ($/Lbs).Consider the following simple linear regression: Q =B₁ + B,P.1. Use Ordinary Least Squares Method to estimate B and B.;2. Interpret the slope;8. Find the prediction line:4. Compute the coefficient of determination; that is, R²,5. What would be the effect of a $4 increase in price on quantity demanded?6. What would be the effect of a $2 decrease in price on quantity demanded?Note: O is the dependent variable (the Y-axis) and P is the independent variable

Answered: 1. Compute Return per Unit of Risk…

Business

Finance

1. Compute Return per Unit of Risk Criterion (RRC) for each stock; 2. Would you invest in IBM or DELL? Why?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter11: Investment Planning

Section: Chapter Questions

Problem 7FPE: Using the Value Line Investment Survey report in Exhibit 11.5, find the following information for...

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