Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Compute the beta for both Apple share and Microsoft share using the S&P 500 Statistical results from the two shares and the market Figures from

Compute the beta for both Apple share and Microsoft share using the S&P 500

image text in transcribed
Statistical results from the two shares and the market Figures from April 2016 to April 2017 Microsoft Apple S&P 500 NASDAQ Dow Industrial Variance 0,000136 0,000155 0,000040 0.000058 0.000038 Standard deviation 0,011564 0.012441 0,006364 0.007631 0.006161 Correlation coefficient With Microsoft 1,000000 0,297573 0.631682 0.700387 0.569780 With Apple 0.297573 .000000 0.427055 0.551138 0.397 708 Those variances, standard deviations and correlation coefficient are computed from daily returns. This method explains why those values are so small

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Morality Of Economic Behaviour Economics As Ethics

Authors: Vangelis Chiotis

1st Edition

1351168878, 9781351168878

More Books

Students also viewed these Economics questions

Question

How does selection differ from recruitment ?

Answered: 1 week ago