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2. The following table contains ten years of excess return data for the ordinary shares of company A and the market portfolio. Discuss how could
2. The following table contains ten years of excess return data for the ordinary shares of company A and the market portfolio. Discuss how could you use this information to obtain an estimate of the beta-coefficient for company A's ordinary shares, run a regression to obtain such an estimate, and discuss wheter your results support the CAPM or not. Year | A's share (%) | Market Portfolio (%) 5.40 12.05 13.00 7.65 6.95 2.65 -3.25 3.60 3.25 5.40 3.50 8.65 9.80 5.55 4.10 1.00 2.50 1.85 3.05 4.60 7 10 2. The following table contains ten years of excess return data for the ordinary shares of company A and the market portfolio. Discuss how could you use this information to obtain an estimate of the beta-coefficient for company A's ordinary shares, run a regression to obtain such an estimate, and discuss wheter your results support the CAPM or not. Year | A's share (%) | Market Portfolio (%) 5.40 12.05 13.00 7.65 6.95 2.65 -3.25 3.60 3.25 5.40 3.50 8.65 9.80 5.55 4.10 1.00 2.50 1.85 3.05 4.60 7 10
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