With respect to return-generating models, the intercept term of the market model is the assets estimated: A.

Question:

With respect to return-generating models, the intercept term of the market model is the asset’s estimated:

A. Beta.

B. Alpha.

C. Variance.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

See More Books

Question Posted: Mar 22, 2024 12:01 AM

See More Questions

1. The famous capital asset pricing model or CAPM is a single factor model that characterizes the portion of an assets total return that results from systematic movements in the broader market. It is...
The CAPM is one of the most thoroughly researched models in financial economics. When beta is estimated in practice, a variation of CAPM called the market model is often used. To derive the market...
A. Describe some of the attributes of an ideal risk indicator for stock market investors. B. On the Internet, go to Yahoo! Finance (or msn Money) and download weekly price information over the past...
On June 15, 2020, Smithson Foods purchased $1,000,000 of 2.5 percent corporate bonds at par and designated them as availableforsale investments. On December 31, 2020, Smithsons yearend, the bonds are...
A person has agreed to participate in an extrasensory perception (ESP) experiment. He is asked to randomly pick two numbers between 1 and 6. The second number must be different from the first. Let H...
What role does the globalization process play in your personal consumption profile? After reflecting on that, take a walk in your nearest shopping area and look for signs of the global and the local....
A thin film of water sits on top of a flat piece of glass, and light is incident from below (Fig. P24.24). If the angle of incidence is 30, what is the angle of refraction of the final outgoing ray?...
Squeezers Juice and Tea Company manufactures juices and chai teas that are sold at organic foods stores. Several of its products have been featured in movies because the companys products are popular...
Question 69 (1 point) What is a difference between the typical structure of a retirement savings account (401(k)) and an individual retirement arrangement (IRA)? a) IRA contributions are typically...
With respect to return-generating models, the slope term of the market model is an estimate of the assets: A. Total risk. B. Systematic risk. C. Nonsystematic risk.
The sum of an assets systematic variance and its nonsystematic variance of returns is equal to the assets: A. Beta. B. Total risk. C. Total variance.
Describe some practical ways in which you can use forcing functions and other strategies for lessening the likelihood that automatic processes will have negative consequences for you in some of the...
Pulleys C and D in Figure are fastened together. Weights A and B are supported by ropes wound around the pulleys as shown. The radius for pulley C is 187 mm and the radius for pulley D is 138 mm. If...
As a leader what are some of the thoughtful and creative ideas that you have implemented to motivate your team and increase job satisfaction?
A Chinese smartphone maker TECNO Ltd has provided you with a summary of its price and cost information for one of its product segments (tablets). It is based on 2018 income statement. Units produced...
The following projected financial data is available for the single product of Janis Ltd:- October November December Sales (unit) 50,000 65,000 65,000 Production (unit) 70,000 60,000 50,000 Opening...
I would appreciate freehand sketches for the top, side views, and front views. D C 6 50 B 2.75 A a 5 4 3 2 1 .45 UNLESS OTHERWISE SPECIFIED: DIMENSIONS ARE IN MILLIMETERS SURFACE FINISH: TOLERANCES:...
Last year, your client, Roberto Dinero, mailed an automatic extension for his tax return on April 15. He enclosed a check for $ 10,000 with the extension request. The IRS cashed the check on April...
Find the reduced echelon form of each of the matrices given in Problems 120. c 1 26 + 4
Describe the problem faced by Plan International. What management , organization, and technology factors contributed to this problem?
Describe the system solution to this problem. Describe the types of systems used for the solution.
Why is human resources so important at Plan International?
An 8%, 30-year semi-annual corporate bond was recently being priced to yield 10%. The Macaulay duration for this bond is 10.2 years. What is the bonds modified duration? How much will the price of...
Question 7 of 7 0/14 W PIERDERY Current Attempt in Progress Your answer is incorrect Buffalo Corporation adopted the dollar value LIFO retail inventory method on January 1, 2019. At that time the...
Cost of debt with fees . Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 9.9% with semiannual payments, and will use an investment...

With respect to return-generating models, the intercept term of the market model is the assets estimated: A.

Question:

Step by Step Answer:

Investments Principles Of Portfolio And Equity Analysis

Students also viewed these Business questions