Return on stocks for the periods under study

Reference no: EM131381769

For given problem predict the total return on stocks when the inflation rate is 5%.

Problem
The following are data on annual inflation and stock returns. Run a regression analysis of the data and determine whether there is a linear relationship between inflation and total return on stocks for the periods under study.

Inflation (%)	Total return on stocks (%)
1	-3
2	36
12.6	12
-10.3	-8
0.51	53
2.03	-2
-1.8	18
5.79	32
5.87	24

Reference no: EM131381769

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