Question

Use the following data to explore the risk-return relation and the concept of beta for Apple stock, Alphabet (Google) stock, and the S&P 500 market index:

Year	Apple Stock Price	Alphabet Stock Price	S&P 500 Market Index
2017	$174.09	$1,072.01	2,601.42
2016	$115.82	$807.80	2,238.83
2015	$105.26	$765.84	2,043.94
2014	$113.99	$521.51	2,058.90
2013	$80.01	$559.76	1,848.36
2012	$72.80	$358.17	1,426.19

Part 1: Risk and Beta

3. Make a scatter plot of stock returns (y-axis) against market returns (x-axis) for both Apple and Alphabet stock in one plot. Add a linear trend line to the scatter plot for each stock and include the equation on the chart (Select data point and right click then select "add trendline" and choose a "linear" trend and select "display equation on chart"). Label the y-axis, x-axis, legend, and chart title (9 Points)

Answer 1