Perform a Regression on this data. 

Year	Return on Stock Z	Return on S&P 500
1	10%	5%
2	-15	-10
3	15	10
4	5	0
5	-5	-10

Follow these steps with the data you entered above: 
● Enter returns on stock Z as y variable range.
● Enter returns on S&P 500 as x variable range.
● Plot a scatter diagram from the returns given.
● Estimate the beta for stock Z.
● Provide a linear equation relating stock Z returns to returns on the S&P 500 index.
● What type of relationship between the two variables is predicted from your equation?
● If the return on the S&P 500 index is expected to be 10% over the next year, using your regression equation what
is the expected return on stock Z over the same period?

Answer rating: 100% (QA)

Enter returns on stock Z as y variable range For this data set the returns on stock Z should be entered as the y variable range in a regression analys... View the full answer