7:49 APM1513_TL_101_ASSIGNMENT03_2025 Document Lookup Play Mark Edit 2 This assignment covers study unit 4\& 5 of the study guide. Question 1: 25 Marks Determine the line of best fit (least square regression line) of ABC limited by calculating the \(\beta \) and y intercept using GNU Octave. Beta \(\beta \) is a Greek alphabet in Finance that represents the volatility risk of an asset compared to the market fluctuations. Beta \(\beta \) value meaning: -\(\beta=1\) : asset price moves in line (directly correlated) with the market, with average market risk. -\(\beta=-1\) : asset is inversely (or negatively) correlated to the market. -\(\beta=0\) : asset price uncorrelated to market fluctuations. - Make use of the below table to find the least square regression model: \begin{tabular}{|l|l|l|}\hline Date & Percent Return ABC & Percent Return JSE All Share Index \\\hline 12/1/2020 & 27.43\% & 2.812\%\\\hline 1/1/2021 & 13.25\% & -1.334\%\\\hline 2/1/2021 & -13.67\% & 2.709\%\\\hline 3/1/2021 & -1.321\% & 4.355\%\\\hline 4/1/2021 & 7.215\% & 6.343\%\\\hline 5/1/2021 & -10.87\% & 0.427\%\\\hline 6/1/2021 & 9.614\% & 1.421\%\\\hline 7/1/2021 & 1.103\% & 2.275\%\\\hline 8/1/2021 & 6.071\% & 3.899\%\\\hline 9/1/2021 & 5.404\% & -4.857\%\\\hline 10/1/2021 & 7.22\% & 4.903\%\\\hline \end{tabular}- Hint: first convert all percentages to decimal form. - Once you have the value of the y -intercept and that of Beta \(\beta \), plot the regression line passing through scattered points. Ouestion 2: 15 Marks Page 2 of 3