1. Below is the output of regression analysis of Boeing's (BA) monthly returns against monthly returns of the SP500 Stock Market Index (sample period 2000-2015). Multiple R R Square Adjusted R Square Standard Error Observations 0.5204 0.2708 0.2696 0.08 623 ANOVA Significance F 0.0000 df F 230.59 SS MS 1.53 0.01 Regression Residual Total 1.53 4.12 5.65 1 621 622 0.01 Stat 2.32 15.19 Coefficients Standard Error 0.01 0.00 1.14 0.08 P-value 0.0206 0.0000 Lower 95% Upper 95% 0.00 1.00 1.29 Intercept S&P Monthly Return a) (3 points) Suppose in September 2002 excess returns of BA and market were 0.135 and 0.077, respectively. What were the regression-predicted excess return and the residual for that observation? b) (2 points) What does regression-predicted excess return measure and what does residual measure? c) (2 points) What was the value of R2 for this regression? What does R2 measure? d) (3 points) What is the value of alpha for Boeing shares? Is value of alpha in this regression output consistent with CAPM? Explain. May alpha be disregarded (dismissed) in the case of Boeing e) (1 points) Find value of the correlation coefficient between market and Boeing returns f) (4 points) Find value of firm specific risk and market risk of Boeing stock 1. Below is the output of regression analysis of Boeing's (BA) monthly returns against monthly returns of the SP500 Stock Market Index (sample period 2000-2015). Multiple R R Square Adjusted R Square Standard Error Observations 0.5204 0.2708 0.2696 0.08 623 ANOVA Significance F 0.0000 df F 230.59 SS MS 1.53 0.01 Regression Residual Total 1.53 4.12 5.65 1 621 622 0.01 Stat 2.32 15.19 Coefficients Standard Error 0.01 0.00 1.14 0.08 P-value 0.0206 0.0000 Lower 95% Upper 95% 0.00 1.00 1.29 Intercept S&P Monthly Return a) (3 points) Suppose in September 2002 excess returns of BA and market were 0.135 and 0.077, respectively. What were the regression-predicted excess return and the residual for that observation? b) (2 points) What does regression-predicted excess return measure and what does residual measure? c) (2 points) What was the value of R2 for this regression? What does R2 measure? d) (3 points) What is the value of alpha for Boeing shares? Is value of alpha in this regression output consistent with CAPM? Explain. May alpha be disregarded (dismissed) in the case of Boeing e) (1 points) Find value of the correlation coefficient between market and Boeing returns f) (4 points) Find value of firm specific risk and market risk of Boeing stock