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
Problem 1PS
icon
Related questions
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Risk and Return
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education