How can you estimate a stocks beta from historical returns?
Question:
How can you estimate a stock’s beta from historical returns?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
One common method for estimating a stocks beta from historical returns is through linear regression analysis Heres a breakdown of the process 1 Data C...View the full answer
Answered By
Pushpinder Singh
Currently, I am PhD scholar with Indian Statistical problem, working in applied statistics and real life data problems. I have done several projects in Statistics especially Time Series data analysis, Regression Techniques.
I am Master in Statistics from Indian Institute of Technology, Kanpur.
I have been teaching students for various University entrance exams and passing grades in Graduation and Post-Graduation.I have expertise in solving problems in Statistics for more than 2 years now.I am a subject expert in Statistics with Assignmentpedia.com.
4.40+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Chapter 8 discussed the basic trade-off between risk and return. In the capital asset pricing model (CAPM) discussion, beta was identified as the correct measure of risk for diversified shareholders....
-
In the Capital Asset Pricing Model (CAPM) discussion, beta is identified as the correct measure of risk for diversified shareholders. Recall that beta measures the extent to which the returns of a...
-
Assume that you recently graduated and landed a job as a financial planner with Cicero Services, an investment advisory company. Your first client recently inherited some assets and has asked you to...
-
choess answaer that How many bits are required to store one BCD digit?" 2 8 1 Kilo bits are equal to 1000 bits 1024 bits 1012 bits 1008 bits The function of the encoder is to convert coded...
-
The environmental Guidelines of Lufthansa Airlines state: Environmental protection is a high priority goat-Protecting the environment is an expression of corporate responsibility. We aim for constant...
-
Computing interest amounts on notes receivable A table of notes receivable for 2024 follows: For each of the notes receivable, compute the amount of interest revenue earned during 2024. Round to the...
-
The comparative balance sheets for Spicer Company as of December 31 are presented below. LO11 SPICER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 68,000 $ 45,000 Accounts...
-
In year 0, Javens, Inc. sold machinery with a fair market value of $400,000 to Chris. The machinery's original basis was $317,000 and Javens's accumulated depreciation on the machinery was $50,000,...
-
Required information Skip to question [ The following information applies to the questions displayed below. ] Summary information from the financial statements of two companies competing in the same...
-
December 31, 2014, trial balances for Pledge Company and its subsidiary Stom Company follow: Pledge Company purchased 72,000 shares of Stom Company's common stock on January 1, 2011, for $300,000. On...
-
How do we define a stocks alpha, and what is its interpretation?
-
How can you estimate the market risk premium?
-
How- would the amount of deferred income tax payable be reported in the balance sheet if (a) it is payable within one year and (b) it is payable beyond one year? LO3
-
Customers arrive at a ferry ticket office at the rate of 14 per hour on Monday morn- ings. This can be described by a Poisson distribution. Selling the tickets and pro- viding general information...
-
Glen County manages a waste-to-energy facility that burns 2,000 tons of trash per day and generates over \($20\) million in electricity annually while costing state and local taxpayers \($24\)...
-
Carry out a full decision analysis for Classical Reproductions Ltd, using the following information: Calculation of expected profit with perfect information Prior probabilities for the various events...
-
T and B lymphocytes are normal components of the immune system, but in multiple sclerosis they become autoreactive and attack the central nervous system. What triggers the autoimmune process? One...
-
Prove (11.32) . E (Yi,k | Zi = 0, = e) = E (Yi,k | i = 1, = e) = E (Yi,k | Ti = e), k = 1,2. (11.32)
-
Do the roles in the game correspond to business roles?
-
A routine activity such as pumping gasoline can be related to many of the concepts studied in this text. Suppose that premium unleaded costs $3.75 per gal. Work Exercises in order. Use the...
-
What is the multiples approach to continuation value?
-
Use the financial statements supplied below for International Motor Corporation (IMC) to answer the following questions. a. Calculate the cash conversion cycle for IMC for both 2010 and 2011. What...
-
The Greek Connection had sales of $32 million in 2011, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below: a. Calculate the Greek Connection's net working...
-
Your company BMG Inc. has to liquidate some equipment that is being replaced. The originally cost of the equipment is $120,000. The firm has deprecated 65% of the original cost. The salvage value of...
-
1. What are the steps that the company has to do in time of merger transaction? And What are the obstacle that may lead to merger failure? 2.What are the Exceptions to not to consolidate the...
-
Problem 12-22 Net Present Value Analysis [LO12-2] The Sweetwater Candy Company would like to buy a new machine that would automatically "dip" chocolates. The dipping operation currently is done...
Study smarter with the SolutionInn App