Exercise

Modeling consecutive returns

Let's quantify the relationship between returns in 2019 and 2018 by running a linear regression and making predictions. By looking at companies with extremely high or extremely low returns in 2018, we can see if their performance was similar in 2019.

sp500_yearly_returns is available and dplyr is loaded.

Instructions 1/2

undefined XP

1
2

Run a linear regression on return_2019 versus return_2018 using sp500_yearly_returns. Assign to mdl_returns.