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

Next

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!