Question: Suppose you have the following historical returns for the stock market and for another company, P.Q. Unlimited. Explain how to calculate beta, and use the

Suppose you have the following historical returns for the stock market and for another company, P.Q. Unlimited. Explain how to calculate beta, and use the historical stock returns to calculate the beta for PQU. Interpret your results.

YEAR MARKET PQU 25.7% 40.0% -15.0% 8.0% -11.0% 3 -15.0% 35.0% 10.0% 15.0% 32.5% 13.7% 30.0% 40.0% 42.0% 10.0% -10.0% -25

YEAR MARKET PQU 25.7% 40.0% -15.0% 8.0% -11.0% 3 -15.0% 35.0% 10.0% 15.0% 32.5% 13.7% 30.0% 40.0% 42.0% 10.0% -10.0% -25.0% -10.8% 10 -13.1% 25.0%

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