For a sample of 20 monthly observations, a financial analyst wants to regress the percentage rate of return (Y) of the common stock of a corporation on the percentage rate of return (X) of the Standard Poors 500 index The following information is available a Estimate the linear regression of Y on X...

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For a sample of 20 monthly observations, a financial analyst wants to regress the percentage rate of

Question:

For a sample of 20 monthly observations, a financial analyst wants to regress the percentage rate of return (Y) of the of a on the percentage rate of return (X) of the Standard & Poor€™s 500 index. The following information is available:

a. Estimate the linear regression of Y on X.
b. Interpret the slope of the sample regression line.
c. Interpret the intercept of the sample regression line.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...