# Question

Below you have been provided the prices for Merck and the S& P 500 Index.

a. Calculate the monthly holding- period returns for Merck and the S& P 500 Index.

b. What are the average monthly returns and standard deviations for each?

c. Graph the Merck returns against the S& P 500 Index returns.

d. Use a spreadsheet to compute the slope of the characteristic line.

e. Interpret your findings.

a. Calculate the monthly holding- period returns for Merck and the S& P 500 Index.

b. What are the average monthly returns and standard deviations for each?

c. Graph the Merck returns against the S& P 500 Index returns.

d. Use a spreadsheet to compute the slope of the characteristic line.

e. Interpret your findings.

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