Exhibit 7-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 118

Multiple Choice

Exhibit 7-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $$\begin{array}{c}\underline {\text { Rates of Return }}\\\begin{array} { c c c } \text { Year } & \text { RA Computer } & \text { Market Index } \\\hline 1 & 13 & 17 \\2 & 9 & 15 \\3 & - 11 & 6 \\4 & 10 & 8 \\5 & 11 & 10 \\6 & 6 & 12\end{array}\end{array}$$
-Refer to Exhibit 7-1. Compute the beta for RA Computer using the historic returns presented above.

• A) 0.7715
• B) 1.2195
• C) 1.3893
• D) 1.1023
• E) -0.7715