Unformatted text preview: 2 %. r 2 = 5.8% 8. For every 1 % increase in the S&P, I expect 1.25% increase in Apple’s stock return 9. 1.)SCV (sample coefficient of variation) higher number is more risky 2.) compare to Beta (greater than 1, risky) only useful if AAPL’s % return is linearly related to S&P500’s % return Beta of AAPL is bigger so it is more risky. SCV also indicates that AAPL is riskier with an SCV of 170.83 compared to SCV for S&P500 which is 170.70 10. The scatter plot indicates that Beta is unreliable...
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- Business, Probability theory, Scatter plot, AAPL