The following table shows rates of return for a mutual fund and the market portfolio (S&P...
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The following table shows rates of return for a mutual fund and the market portfolio (S&P 500). A B C 1 Year Fund Market 2 1 14% 13% 3 2 -30% -14% 4 3 -6% -2% 5 4 5% 28% 6 10 14% 8% 7 6 11% 8% Part 1 Attempt 1/10 for 10 pts. Regress the returns on the stock on the returns on the S&P 500. What is the beta of the fund, using the industry model (not subtracting the risk-free rate), i.e., the slope coefficient of the regression? 2+ decimals Submit The following table shows rates of return for a mutual fund and the market portfolio (S&P 500). A B C 1 Year Fund Market 2 1 14% 13% 3 2 -30% -14% 4 3 -6% -2% 5 4 5% 28% 6 10 14% 8% 7 6 11% 8% Part 1 Attempt 1/10 for 10 pts. Regress the returns on the stock on the returns on the S&P 500. What is the beta of the fund, using the industry model (not subtracting the risk-free rate), i.e., the slope coefficient of the regression? 2+ decimals Submit
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Beta CovarianceFund Market VarianceMarket First calculate the covari... View the full answer
Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-1118301173
1st Canadian Edition
Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi
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