The Annual Returns of Wonder Widgets,Inc Find the Following for Wonder Widgets:
A

question 10

Essay

The annual returns of Wonder Widgets,Inc.and the S&P 500 Composite Index over the last ten years were as follows:
$\begin{array} { r c c } \text { Year } & \text { Wonder Widgets } & \text { S\&P } 500 \\\hline 1 & - 15 \% & - 8.5 \% \\2 & 10 \% & 4.0 \% \\3 & 12 \% & 14.0 \% \\4 & 20 \% & 15.0 \% \\5 & - 20 \% & - 14.0 \% \\6 & - 15 \% & - 26.0 \% \\7 & 25 \% & 37.0 \% \\8 & 30 \% & 24.0 \% \\9 & - 10 \% & - 7.0 \% \\10 & 3 \% & 6.5 \%\end{array}$
Find the following for Wonder Widgets:
a. Beta ( $\beta$ _W, slope of regression line)
b. Alpha ( $\alpha$ _W, intercept of regression line)
c. Unsystematic variance ( $\sigma$ ²_W - $\beta$ ²_W $\sigma$ ²_m)
d. Correlation coefficient ( )

---

Definitions:

Logistics

The detailed coordination of a complex operation involving many people, facilities, or supplies, in the movement of products or materials.

Integrated Supply Chain

An integrated supply chain is a cohesive system where every stage, from supplier to customer, is effectively coordinated and managed to optimize efficiency and reduce costs.

Raw Material Procurement

The process of acquiring the basic materials needed for production or manufacturing.

Supply Chain Management

The oversight and management of the flow of goods and services, including all processes that transform raw materials into final products.