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

question 15

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.
• D) Beta has nothing to do with the relationship seen in this scatterplot.

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Definitions:

Producer Surplus

is the difference between what producers are willing to accept for a good or service versus what they actually receive.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market.

Producer Surplus

The difference between what producers are willing to accept for a product versus what they actually receive, measured by the area above the supply curve and below the market price.

Sellers' Willingness

Refers to the inclination or readiness of sellers in a market to offer goods or services for sale at various prices.