Question: 6. Given the following retrospective data for year-to-year changes (%) in the NASDAQ index, along with the same metric for an individual stock of one

6. Given the following retrospective data for year-to-year changes (%) in the NASDAQ index, along with the same metric for an individual stock of one of its own listings, Apple (AAPL), please answer the following questions:

A) Develop a simple linear equation for the model of AAPL as a function of NASDAQ percent change, including the R2 parameter. [5 pts]

B) Calculate the Beta metric for AAPL relative to the NASDQ market. [5 pts]

C) Briefly state your interpretation of these data. [5 pts]

Annual % Change

Year NASDAQ AAPL*

2009	19.05	13.28
2010	21.16	55.00
2011	3.49	36.26
2012	8.49	68.73
2013	30.37	-19.40
2014	16.24	38.59
2015	8.93	15.33
2016	1.09	2.66
2018	34.52	95.23
2019	11.52	1.24

2020 33.21 107.29

*Note these data were recorded in September of each respective year

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