Determine the Beta for Stock a Based on the Following

question 109

Essay

Determine the Beta for Stock A based on the following set of returns.Of course, the reliability of a Beta calculated with only four data points may be low.Interpret the Beta that you have calculated.
$$\begin{array} { | c | c | } \hline \text { Stock A Returns } & \text { Market Returns } \\\hline 6.0 \% & 5.0 \% \\\hline 15.0 \% & 12.5 \% \\\hline - 4.2 \% & - 3.5 \% \\\hline 9.0 \% & 7.5 \% \\\hline\end{array}$$

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Definitions:

Case Study Method

A research strategy that involves the in-depth study of a single individual or group to explore complex issues, patterns, and characteristics.

Childhood Development

The physical, cognitive, emotional, and social changes that occur from birth until the end of adolescence, as the individual progresses from dependency to increasing autonomy.

Jean Piaget

A Swiss psychologist renowned for his pioneering work in the field of developmental psychology, especially his theory of cognitive development in children.

Psychological Meanings

The interpretations and importance given to certain phenomena, objects, or events based on psychological perspectives and individual mental frameworks.