A Linear Function best explains the relationship between the return and time.
We have given that,
This scatter plot was created using daily stock market returns.
We have to determine which type of function fits the data of the graph best.
What is the scatter plot?
A scatter plot is a type of plot or mathematical diagram using Cartesian coordinates to display values for typically two variables for a set of data. If the points are coded, one additional variable can be displayed.
A Linear Function best explains the relationship between the return and time.
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