Open an excel spreadsheet and enter the following data $($see image$)$:

Perform a Regression on this data. To access regression:

Open Microsoft Excel, Navigate to File $--$Options$--$Ad$-$ins$--$Analyssi Tool Pack, click GO$,$ select Analysis Tool Pack and click OK$.$ This adds the analysis tool pack to your Excel.

Next, locate the Data tab, click on Data Analysis $($on the far right$)$ and select Regression.

Follow these steps with the data you entered above:

a$.$ Enter returns on stock Z as Y variable range

b$.$ Enter returns on S&P $500$ as X variable range

c$.$ Plot a scatter diagram from the returns given

d$.$ Estimate the beta for stock Z

e$.$ Write a linear equation relating stock Z returns to returns on the S&P $500$ index

f$.$ What type of relationship between the two variables is predicted from your equation?

g$.$ If the return on the S&P $500$ index is expected to be $10\%$ over the next year, using your regression quation what is the expected return on stock Z over the same period?