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Posted on Oct 05, 2024

5. The Excel file Stock Data contains monthly data for several stocks and the S&P 500 Index (i.e., the market). a. Compute the equation: R;=

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5. The Excel file Stock Data contains monthly data for several stocks and the S&P 500 Index (i.e., the market). a. Compute the equation: R;= 0; + BiRmkt for PFE. b. Compute R2 for this equation. c. Explain what a measures for PFE? d. Explain what measures for PFE? e. Explain what R2 measures for PFE? f. Conduct a complete hypothesis test to determine if a Significant. g. Conduct a complete hypothesis test to determine if is Significant. h. Construct a graph of the Characteristic Line for PFE. i. On this graph (using EXCEL's graphing features) include a trendline, the computed equation, and the R2 value. ii. Label the axes and include a title for the graph. Month INTC PFE 1 NT -3.23% 16.66% 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Cin -2.90% 4.79% 2.91% 4.25% 5.30% -0.88% 3.54% 3.76% 2.94% 2.86% -0.86% 0.41% -2.85% -3.05% 4.85% 1.26% 5.82% -7.20% -0.86% 5.10% 1.69% -0.83% 0.86% 4.66% 4.45% 0.34% 0.00% 1.18% 6.25% 0.37% 5.95% 0.00% 6.43% 7.72% -6.22% Dell -9.51% 10.51% 7.93% -7.34% -14.27% 3.70% 1.78% -15.77% -4.16% -4.34% -15.88% 35.06% 21.97% 11.46% 29.49% 14.75% -6.92% 0.00% -25.57% 21.51% 23.49% 40.97% 22.31% 11.58% 12.89% -17.99% 5.87% -1.01% 17.36% 13.46% 2.32% -25.48% -5.52% 9.03% 24.39% MSFT -16.18% 12.03% 8.29% -12.40% 3.30% 7.31% 16.59% 19.34% 6.42% 0.00% 6.32% 6.76% 12.15% 4.74% 25.86% 4.11% -12.50% -7.52% 2.44% 1.19% 13.33% 4.16% 30.40% 5.73% 2.29% -6.71% 10.86% -6.89% 7.89% 15.99% 4.40% 5.48% 3.59% 14.40% 8.09% 1.94% 10.47% 12.07% -10.77% 5.18% -1.64% 7.50% 4.65% 2.96% -0.72% 14.50% 1.90% 3.73% -5.39% 22.15% -2.59% -5.32% -24.99% -0.38% 0.75% 11.94% 2.66% 18.83% 4.37% -2.10% 5.35% 13.20% -16.59% 1.08% 5.32% -14.65% -3.83% 0.91% 19.51% 22.21% 18 S&P 500 2.40% 5.20% 4.00% -0.50% 9.00% 1.90% -0.40% -2.30% 2.10% 2.40% -6.70% 1.30% 2.60% -2.50% 9.80% -0.70% -0.30% -9.00% -4.90% -0.40% 6.40% 2.70% 4.40% 7.20% 2.40% 0.30% 4.30% -4.60% 4.70% 2.40% -1.60% 1.30% -4.00% 11.40% -1.90% 4.31% 7.61% -0.56% -5.94% 14.35% 6.54% -0.90% -1.45% 10.47% -6.24% -1.44% -13.12% 2.76% -6.39% 17.24% -2.66% 18.13% -5.49% -0.53% 3.01% 11.90% 0.00% 11.30% 17.59% 1.90% 1.87% 8.65% -5.73% 11.49% 6.43% -0.57% 9.98% -6.88% 26.55% -13.09% -0.72% 2.16% 13.38% 10.56% -3.93% 5.85% -2.76% 5.11% 1.08% 3.74% 2.06% -4.55% 17.46% -0.45% -1.81% -11.98% -2.09% 12.84% -2.37% 9.71% -1.77% 5.86% 6.81% 11.55% 7.14% -2.67% 8.90% 0.31% -1.57% 6.69% 4.18% 3.15% 3.89% 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 5. The Excel file Stock Data contains monthly data for several stocks and the S&P 500 Index (i.e., the market). a. Compute the equation: R;= 0; + BiRmkt for PFE. b. Compute R2 for this equation. c. Explain what a measures for PFE? d. Explain what measures for PFE? e. Explain what R2 measures for PFE? f. Conduct a complete hypothesis test to determine if a Significant. g. Conduct a complete hypothesis test to determine if is Significant. h. Construct a graph of the Characteristic Line for PFE. i. On this graph (using EXCEL's graphing features) include a trendline, the computed equation, and the R2 value. ii. Label the axes and include a title for the graph. Month INTC PFE 1 NT -3.23% 16.66% 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Cin -2.90% 4.79% 2.91% 4.25% 5.30% -0.88% 3.54% 3.76% 2.94% 2.86% -0.86% 0.41% -2.85% -3.05% 4.85% 1.26% 5.82% -7.20% -0.86% 5.10% 1.69% -0.83% 0.86% 4.66% 4.45% 0.34% 0.00% 1.18% 6.25% 0.37% 5.95% 0.00% 6.43% 7.72% -6.22% Dell -9.51% 10.51% 7.93% -7.34% -14.27% 3.70% 1.78% -15.77% -4.16% -4.34% -15.88% 35.06% 21.97% 11.46% 29.49% 14.75% -6.92% 0.00% -25.57% 21.51% 23.49% 40.97% 22.31% 11.58% 12.89% -17.99% 5.87% -1.01% 17.36% 13.46% 2.32% -25.48% -5.52% 9.03% 24.39% MSFT -16.18% 12.03% 8.29% -12.40% 3.30% 7.31% 16.59% 19.34% 6.42% 0.00% 6.32% 6.76% 12.15% 4.74% 25.86% 4.11% -12.50% -7.52% 2.44% 1.19% 13.33% 4.16% 30.40% 5.73% 2.29% -6.71% 10.86% -6.89% 7.89% 15.99% 4.40% 5.48% 3.59% 14.40% 8.09% 1.94% 10.47% 12.07% -10.77% 5.18% -1.64% 7.50% 4.65% 2.96% -0.72% 14.50% 1.90% 3.73% -5.39% 22.15% -2.59% -5.32% -24.99% -0.38% 0.75% 11.94% 2.66% 18.83% 4.37% -2.10% 5.35% 13.20% -16.59% 1.08% 5.32% -14.65% -3.83% 0.91% 19.51% 22.21% 18 S&P 500 2.40% 5.20% 4.00% -0.50% 9.00% 1.90% -0.40% -2.30% 2.10% 2.40% -6.70% 1.30% 2.60% -2.50% 9.80% -0.70% -0.30% -9.00% -4.90% -0.40% 6.40% 2.70% 4.40% 7.20% 2.40% 0.30% 4.30% -4.60% 4.70% 2.40% -1.60% 1.30% -4.00% 11.40% -1.90% 4.31% 7.61% -0.56% -5.94% 14.35% 6.54% -0.90% -1.45% 10.47% -6.24% -1.44% -13.12% 2.76% -6.39% 17.24% -2.66% 18.13% -5.49% -0.53% 3.01% 11.90% 0.00% 11.30% 17.59% 1.90% 1.87% 8.65% -5.73% 11.49% 6.43% -0.57% 9.98% -6.88% 26.55% -13.09% -0.72% 2.16% 13.38% 10.56% -3.93% 5.85% -2.76% 5.11% 1.08% 3.74% 2.06% -4.55% 17.46% -0.45% -1.81% -11.98% -2.09% 12.84% -2.37% 9.71% -1.77% 5.86% 6.81% 11.55% 7.14% -2.67% 8.90% 0.31% -1.57% 6.69% 4.18% 3.15% 3.89% 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35