2. Is the alpha (intercept) of either Ely or the mutual fund significantly more or less than zero? 3. How do you interpret the beta for the stock and the mutual fund? 4. Which of the two regression estimates has the highest R-squared? Is this what you would have expected? Use scatterplot below to explain why.
ELY Risk Premium Mutual Fund Risk Premium Ads Title Linear (ELY Risk Premium) ...--- Linear (Mutual Fund Risk Premium) 0.08 0.06 0.04 0.02 0.02 0.04 Part 2 Loan Amortization Sched Part 2 Chart Part 3 Data Report Sheet Part 4 Stock Data Formulas Page Layout Data Review View Hp Tell me w JU fo =F35-035 ate Monthly Risk- S&P 500 Risk-Free Free S&P 500 Return 0.00005 1408.469971 2012-03-01 0.00060 0.00070 2012-04-01 1397.910034 -0.007497453 0.00006 2012-05-01 0.00070 1310.329956 -0.062650726 0.00006 Risk Premium Analysis Stock Price Return 6.593309 5.978844 -0.093195238 5.393764 0.097858382 Mutual Fund Mutual Fund Price (VINIX) Return 115.374893 114.650108 -0.006281999 107.760185 0.060095216 y = 1.2742x + 0.0005 R2 = 0.1992 y = 1.0021x + 0.0018 R2 = 0.9996 1 ELY Regression Analysis 3 Regression Statistics 4 Multiple R 0.99981 5 R Square 0.99962 6 Adjusted F 0.99961 7 Standard 1 0.00059 8 Observatio 5 9 10 ANOVA 11 12 Regressior 13 Residual 14 Total F gnificance F 148352 5E-99 df SS MS 1 0.05088 0.05088 57 2E-05 3.4E-07 58 0.0509 15 Coefficientsndard Errt Stat 17 Intercept 0.00177 8E-05 22.1587 18 -0.00756 1.00196 0.0026 385.164 P-value Lower 95Jpper 95%ower 95.0%pper 95.0% 1.1E-29 0.00161 0.00193 0.00161 0.00193 5E-99 0.99675 1.00717 0.99675 1.00717 19 ELY Risk Premium Mutual Fund Risk Premium Axis Title tinar (LY Risk Premium) Linear Mutual Fund Risk Premium) 0.06 0.04 0.02 Part 2 loan Amortization Sched Part 2 Chart Part 3 Data Report Sheet Part 4 Stock Data y = 1.2742x + 0.0005 R2 = 0.1992 y = 1.0021x + 0.0018 R? = 0.9996 C16 - X fx Standard Error C D E F G H A B ELY Regression Analysis 3 Regression Statistics 4 Multiple R 0.99981 5 R Square 0.99962 6 Adjusted F 0.99961 7 Standard t 0.00059 8 Observatic 59 df F 10 ANOVA 11 12 Regressior 13 Residual 14 Total gnificance F 148352 5E-99 SS MS 1 0.05088 0.05088 57 2E-05 3.4E-07 58 0.0509 15 16 Coefficientsandard Eri Stat 17 Intercept 0.00177 8E-05 22.1587 18 -0.00756 1.00196 0.0026 385.164 P-value Lower 9596Jpper 95%ower 95.09pper 95.0% 1.1E-29 0.00161 0.00193 0.00161 0.00193 5E-99 0.99675 1.00717 0.99675 1.00717 B Monthly Risk- S&P 500 Mutual Fund Mutual Fund ate Risk-Free Free S&P 500 Return Stock Price Return Price (VINIX) Return 2012-03-01 0.00060 0.00005 1408.469971 6.593309 115.374893 2012-04-01 0.00070 0.00006 1397.910034 -0.007497453 5.978844 -0.093195238 114.650108 -0,006281999 2012-05-01 0.00070 0.00006 1310.329956 -0.062650726 5.393764 -0.097858382 107.760185 -0.060095216 Risk Premium Analysis ELY Risk Premium Mutual Fund Risk Premium Ads Title Linear (ELY Risk Premium) ...--- Linear (Mutual Fund Risk Premium) 0.08 0.06 0.04 0.02 0.02 0.04 Part 2 Loan Amortization Sched Part 2 Chart Part 3 Data Report Sheet Part 4 Stock Data Formulas Page Layout Data Review View Hp Tell me w JU fo =F35-035 ate Monthly Risk- S&P 500 Risk-Free Free S&P 500 Return 0.00005 1408.469971 2012-03-01 0.00060 0.00070 2012-04-01 1397.910034 -0.007497453 0.00006 2012-05-01 0.00070 1310.329956 -0.062650726 0.00006 Risk Premium Analysis Stock Price Return 6.593309 5.978844 -0.093195238 5.393764 0.097858382 Mutual Fund Mutual Fund Price (VINIX) Return 115.374893 114.650108 -0.006281999 107.760185 0.060095216 y = 1.2742x + 0.0005 R2 = 0.1992 y = 1.0021x + 0.0018 R2 = 0.9996 1 ELY Regression Analysis 3 Regression Statistics 4 Multiple R 0.99981 5 R Square 0.99962 6 Adjusted F 0.99961 7 Standard 1 0.00059 8 Observatio 5 9 10 ANOVA 11 12 Regressior 13 Residual 14 Total F gnificance F 148352 5E-99 df SS MS 1 0.05088 0.05088 57 2E-05 3.4E-07 58 0.0509 15 Coefficientsndard Errt Stat 17 Intercept 0.00177 8E-05 22.1587 18 -0.00756 1.00196 0.0026 385.164 P-value Lower 95Jpper 95%ower 95.0%pper 95.0% 1.1E-29 0.00161 0.00193 0.00161 0.00193 5E-99 0.99675 1.00717 0.99675 1.00717 19 ELY Risk Premium Mutual Fund Risk Premium Axis Title tinar (LY Risk Premium) Linear Mutual Fund Risk Premium) 0.06 0.04 0.02 Part 2 loan Amortization Sched Part 2 Chart Part 3 Data Report Sheet Part 4 Stock Data y = 1.2742x + 0.0005 R2 = 0.1992 y = 1.0021x + 0.0018 R? = 0.9996 C16 - X fx Standard Error C D E F G H A B ELY Regression Analysis 3 Regression Statistics 4 Multiple R 0.99981 5 R Square 0.99962 6 Adjusted F 0.99961 7 Standard t 0.00059 8 Observatic 59 df F 10 ANOVA 11 12 Regressior 13 Residual 14 Total gnificance F 148352 5E-99 SS MS 1 0.05088 0.05088 57 2E-05 3.4E-07 58 0.0509 15 16 Coefficientsandard Eri Stat 17 Intercept 0.00177 8E-05 22.1587 18 -0.00756 1.00196 0.0026 385.164 P-value Lower 9596Jpper 95%ower 95.09pper 95.0% 1.1E-29 0.00161 0.00193 0.00161 0.00193 5E-99 0.99675 1.00717 0.99675 1.00717 B Monthly Risk- S&P 500 Mutual Fund Mutual Fund ate Risk-Free Free S&P 500 Return Stock Price Return Price (VINIX) Return 2012-03-01 0.00060 0.00005 1408.469971 6.593309 115.374893 2012-04-01 0.00070 0.00006 1397.910034 -0.007497453 5.978844 -0.093195238 114.650108 -0,006281999 2012-05-01 0.00070 0.00006 1310.329956 -0.062650726 5.393764 -0.097858382 107.760185 -0.060095216 Risk Premium Analysis
