The return on Holland-Wilson Inc. (HWI) stock over the last three years is shown below along with the market€™s return for the same period.

Plot HWI€™s return against that of the market in each of the three years. Make three estimates of HWI€™s beta by drawing characteristic lines between pairs of data points (1 and 2; 1 and 3; 2 and 3). What does this range of betas imply about the stock€™s risk relative to an averagestock?

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Year HWI Market 4.0% 9.0 3.0% 6.0 2 3 12.0 10.0