The file Delldata.xlsx (available on the companion website) contains monthly returns for the Standard & Poor's stock index and for Dell stock. The beta of a stock is defined as the slope of the least-squares line used to predict the monthly return for a stock from the monthly return for the market. Use this file to perform the following exercises:

(a) Estimate the beta of Dell.

(b) Interpret the meaning of Dell's beta.

(c) If you believe a recession is coming, would you rather invest in a high-beta or low-beta stock?

(d) During a month in which the market goes up 5 percent, you are 95 percent sure that Dell's stock price will increase between which range of values?