Figure 8.13 is a scatter diagram of the annual rates of return on Apple and Microsoft stock during the years 1998–2008:

a. What was the highest annual return for Apple?

b. What was the lowest annual return for Microsoft?

c. Was the average annual return higher for Apple or for Microsoft?

d. Was there a greater dispersion in Apple or Microsoft returns?

e. Were Apple and Microsoft stock returns positively related, negatively related, or unrelated?

Transcribed Image Text:

250 200 150 100 Apple 50 50 0 -50 : -100 -100 -50 0 50 100 150 50 Microsoft Figure 8.13 200 250