Chart Title 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0%0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35 0% 40.0% -20.0% Goodman Landry o make the graph, we first selected the range with the returns and the column heads, then clicked the chart wizard, then hoose the scatter diagram without connected lines. That gave us the data points. We then used the drawing toolbar to nake free-hand ("by eye") regression lines, and changed the lines color and weights to match the dots. . Estimate Goodman's and Landry's betas as the slopes of regression lines with stock returns on the vertical xis (y-axis) and market return on the horizontal axis (x-axis). (Hint: use Excel's SLOPE function.) Are these betas consistent with your graph? Goodman's beta = 1.54

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question

are the betas consistent with the graph

Chart Title
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
-10.0%0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35 0%
40.0%
-20.0%
Goodman
Landry
o make the graph, we first selected the range with the returns and the column heads, then clicked the chart wizard, then
hoose the scatter diagram without connected lines. That gave us the data points. We then used the drawing toolbar to
nake free-hand ("by eye") regression lines, and changed the lines color and weights to match the dots.
. Estimate Goodman's and Landry's betas as the slopes of regression lines with stock returns on the vertical
xis (y-axis) and market return on the horizontal axis (x-axis). (Hint: use Excel's SLOPE function.) Are these betas
consistent with your graph?
Goodman's beta =
1.54
Transcribed Image Text:Chart Title 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0%0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35 0% 40.0% -20.0% Goodman Landry o make the graph, we first selected the range with the returns and the column heads, then clicked the chart wizard, then hoose the scatter diagram without connected lines. That gave us the data points. We then used the drawing toolbar to nake free-hand ("by eye") regression lines, and changed the lines color and weights to match the dots. . Estimate Goodman's and Landry's betas as the slopes of regression lines with stock returns on the vertical xis (y-axis) and market return on the horizontal axis (x-axis). (Hint: use Excel's SLOPE function.) Are these betas consistent with your graph? Goodman's beta = 1.54
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