To illustrate the estimation of the market model, we use return data for the CocaCola company (ticker

Question:

To illustrate the estimation of the market model, we use return data for the Coca‐Cola company (ticker symbol “KO”). Fitting a regression equation to 60 months of return data along with corresponding returns for the S&P 500, the estimated equation is

R_KO = 0.008 + 0.528R_S&P500

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