You observe the following scatterplot of Ford's weekly returns against the S&P 500. Which of the following statements is true about Ford's beta against the S&P 500?
A) Ford's beta appears to be positive.
B) Ford's beta appears to be negative.
C) Ford's beta appears to be zero.
D) Beta has nothing to do with the relationship seen in this scatterplot.

Question

You observe the following scatterplot of Ford's weekly returns against the S&P 500. Which of the following statements is true about Ford's beta against the S&P 500? 
A) Ford's beta appears to be positive. 
B) Ford's beta appears to be negative. 
C) Ford's beta appears to be zero. 
D) Beta has nothing to do with the relationship seen in this scatterplot.

Quizplus · Accepted Answer

The scatterplot shows a positive relationship between Ford's weekly returns and the S&P 500. This indicates that as the S&P 500 increases, Ford's returns also tend to increase. A positive relationship implies a positive beta, as Ford's returns are positively correlated with the market returns. Therefore, the correct answer is A.

You Observe the Following Scatterplot of Ford's Weekly Returns Against