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Author Question: Fishing supply company, Outside Tackle, has its returns graphed against the market returns for a 5 ... (Read 67 times)

mia

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Fishing supply company, Outside Tackle, has its returns graphed against the market returns for a 5 year period. The line that has the best fit for the data has the formula y = .1254 + 1.265x. What information can we derive from this?
◦ The beta of Outside Tackle is .1254.
◦ The systematic risk of Outside Tackle is less than average for the market.
◦ The beta for Outside Tackle is 1.265.
◦ Outside Tackle has posted better returns than the market for this time period.


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Marked as best answer by mia on Apr 25, 2021

Joy Chen

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mia

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


marict

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Reply 3 on: Yesterday
Excellent

 

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