Question: 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

Perform a Regression on this data. 

YearReturn on Stock ZReturn on S&P 500
110%5%
2-15-10
31510
450
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?


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