USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM   Rates of Return Year RA Computer Market Index 1   13 17 2     9 15 3 –11   6 4   10   8 5   11 10 6     6 12 Refer to Exhibit 7.1. The equation of the characteristic line for RA is   a. RRA = –7.98 + 1.1023RMI.     b. RRA = –9.41 + 1.3893RMI.     c. RRA = –4.92 – 0.7715RMI.     d. RRA = 11.63 + 1.2195RMI.     e. RRA = 4.92 + 0.7715RMI.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Exhibit 7.1
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM

  Rates of Return
Year RA Computer Market Index
1   13 17
2     9 15
3 –11   6
4   10   8
5   11 10
6     6 12

Refer to Exhibit 7.1. The equation of the characteristic line for RA is
  a. RRA = –7.98 + 1.1023RMI.  
  b. RRA = –9.41 + 1.3893RMI.  
  c. RRA = –4.92 – 0.7715RMI.  
  d. RRA = 11.63 + 1.2195RMI.  
  e. RRA = 4.92 + 0.7715RMI.  
 
 
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