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.

---

Definitions:

Long Run

A period sufficient for all inputs, including physical capital and labor, to be adjusted in the production process.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of the industry over a period of time.

Marginal Cost Curves

Graphs that depict the cost of producing one additional unit of a good or service, typically showing how costs vary with production volume.

Short-run

A time frame in which at least one factor of production is fixed, limiting adjustments to production levels.