You Observe the Following Scatterplot of Ford's Weekly Returns Against

question 27

Multiple Choice

You observe the following scatterplot of Ford's weekly returns against the S&P 500.Which of the following statements is true about Ford's beta against the S&P 500?

• A) Ford's beta appears to be positive.
• B) Ford's beta appears to be negative.
• C) Ford's beta appears to be zero- there is no apparent relation between its return and the S&P return.
• D) Ford's beta appears to be highly negative.
• E) Beta has nothing to do with the relationship seen in this scatterplot.

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Definitions:

Accounting

The systematic and comprehensive recording of financial transactions pertaining to a business, and the process of summarizing, analyzing, and reporting these transactions to oversight agencies and tax collection entities.

Differences

Differences can refer to discrepancies or variations between two or more items, figures, or concepts in various contexts.

Earnings Per Share

A financial ratio that measures the amount of a company's profit allocated to each outstanding share of common stock, indicating a company's profitability.

Computed

Calculated or estimated following a specific procedure or formula.