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please answer question 8.2 8.2 Figure 8.13 is a scatter diagram of the annual ra

ID: 3226857 • Letter: P

Question

please answer question 8.2

8.2 Figure 8.13 is a scatter diagram of the annual rates of return on Apple and Microsoft stock during the years 1998–2008:
a. What was the highest annual return for Apple?
b. What was the lowest annual return for Microsoft?
c. Was the average annual return higher for Apple or for Microsoft?
d. Was there a greater dispersion in Apple or Microsoft returns?
e. Were Apple and Microsoft stock returns positively related, negatively related, or unrelated?

250 200 150 100 50 50 100 100 50 0 50 100 150 200 250 Microsoft FIGURE 8.13 Exercise 8.2.

Explanation / Answer

From the scatter diagram

a)The highest annual return for Apple is 210

b)The lowest annual return for Microsoft is -70

c) The average annual return higher for Apple

d) APPLE

e) Apple and Microsoft stock returns positively related