Question: 1. According the the graphs, which stock, AAA or BBB, has the higher CAPM beta? Another way to ask this is which stock has the

According the the graphs, which stock, AAA or BBB, has the higher CAPM beta?

Another way to ask this is which stock has the higher market or systematic risk?

How do you know? In other words, explain your answer.

According the the graphs, which stock's regression would appear to have the higher R Squared?

Another way to ask this is which stock's regression has the better fit?

How do you know? In other words, explain your answer. 1. According the the graphs, which stock, AAA or BBB, has the

The graphs below show the return plots and regression lines for two hypothetical stocks AAA and BBB. The graphs below show the return plots and regression lines for two hypothetical stocks AAA and BBB

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