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5. The following table contains the monthly returns on two stocks and on the market for the last year. Using regression analysis, compute the estimated
5. The following table contains the monthly returns on two stocks and on the market for the last year. Using regression analysis, compute the estimated equations relating the return on JKL to the return on the market and MNO to the return on the market. a. According to the equations, what is each stock's beta coefficient? b. What does each beta coefficient imply about the systematic risk associated with each stock? c. What is the difference between the return on each stock given by the estimated equation for December and the actual return? d. What is the for each equation? e. What does the mean? What does it imply about other sources of risk as they apply to stocks JKL and MNO
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