Question: Use the following data to answer questions 9 to 14. Based on the following data of General Electric traded on the NYSE and the market
Use the following data to answer questions 9 to 14.
Based on the following data of General Electric traded on the NYSE and the market benchmark S&P 500 index:
| Year | X= S&P 500 index returns (market) | Y = General Electric returns |
| 2015 | 0.15 | 0.16 |
| 2016 | 0.14 | 0.16 |
| 2017 | 0.07 | 0.08 |
| 2018 | -0.12 | -0.15 |
| 2019 | -0.10 | -0.18 |
| 2020 | 0.19 | 0.18 |
| 2021 | 0.30 | 0.36 |
Compute the expected value of General Electric return for 2022, if you assume that the 2022 return of the S&P500 (market) will be 0.05 in 2022.
(CHOOSE THE CLOSEST ANSWER).
Group of answer choices
0.0345
0.0373
0.0280
0.0428
0.0526
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