Question
Chapter 5, Problem 3, parts a-c Use the spreadsheet file that is posted to Blackboard for this assignment. This contains monthly total returns for the
Chapter 5, Problem 3, parts a-c Use the spreadsheet file that is posted to Blackboard for this assignment. This contains monthly total returns for the S&P 500 index and Fidelity Contrafund (FCNTX) from September 2011 to August 2016 (60 months). A. Create a scatter plot to show the relationship between the returns on FCNTX (Y) and S&P 500 (X). B. Add a linear trend line to the chart, and place the equation and R-squared on the chart. How much of the variability in FCNTX returns can be explained by variability in the broad market (R-squared)? C. Using the Analysis ToolPak add-in, run a regression analysis on this data. Your dependent variable is the FCNTX returns (Y), and the independent variable is the S&P 500 returns (X) (i.e we want to try to predict FCNTX using S&P500). The slope coefficient is FCNTXs beta. Is the beta of this stock statistically significant (p-value < 0.1)? i need answers to last 3 questions of muitpule choice.
| Month | S&P 500 | AAPL | FCNTX |
| Sep-11 | -7.03% | -0.93% | -7.43% |
| Oct-11 | 10.93% | 6.17% | 10.19% |
| Nov-11 | -0.22% | -5.59% | -0.67% |
| Dec-11 | 1.02% | 5.97% | -1.07% |
| Jan-12 | 4.48% | 12.70% | 5.02% |
| Feb-12 | 4.32% | 18.83% | 5.50% |
| Mar-12 | 3.29% | 10.53% | 3.75% |
| Apr-12 | -0.63% | -2.59% | -0.12% |
| May-12 | -6.01% | -1.08% | -5.62% |
| Jun-12 | 4.12% | 1.09% | 2.35% |
| Dec-14 | -0.25% | -7.19% | -0.53% |
| Jan-15 | -3.00% | 6.14% | -1.34% |
| Feb-15 | 5.75% | 10.08% | 5.99% |
| Mar-15 | -1.58% | -3.14% | -0.50% |
| Apr-15 | 0.96% | 0.58% | -0.84% |
| May-15 | 1.29% | 4.53% | 2.16% |
| Jun-15 | -1.94% | -3.73% | -0.29% |
| Jul-15 | 2.10% | -3.29% | 3.45% |
| Aug-15 | -6.03% | -6.62% | -5.96% |
| Sep-15 | -2.47% | -2.18% | -2.05% |
| Oct-15 | 8.44% | 8.34% | 7.08% |
| Nov-15 | 0.30% | -0.58% | 0.65% |
| Dec-15 | -1.58% | -11.02% | -1.33% |
| Jan-16 | -4.96% | -7.53% | -5.71% |
| Feb-16 | -0.13% | -0.13% | -1.17% |
| Mar-16 | 6.78% | 12.72% | 5.60% |
| Apr-16 | 0.39% | -13.99% | 0.25% |
| May-16 | 1.80% | 7.17% | 1.67% |
| Jun-16 | 0.26% | -4.26% | -1.51% |
| Jul-16 | 3.69% | 9.00% | 4.48% |
| Aug-16 | 0.14% | 2.36% | 0.27% |
QUESTION 1 What is the slope and the intercept in your scatter plot for FCNTX? slope :-0.0003, Intercept 0.9599, slope : 0.0015 , intercept:09387 , slop: 0.9387 , intercept : 0.0015 , slope :0.9599 ; intercept : 0.0003 QUESTION 2 How much of the variability in FCNTX returns can be explained by variability in the broad market (R-squared)? 0.516 , 0.901 , 0.949 , 0.267 QUESTION 3 is the beta of FCNTX statistically significant (p-value < 0.1)? yes or no (i need answers to last all 3 questions for multipul choice
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
27th edition
978-1337272094, 1337272094, 978-1337514071, 1337514071, 978-1337899451
