Data for regression:

https://www.dropbox.com/scl/fi/vrdowf09ip1xcxi4dyly8/StocksMonthlyReturns_Data.xlsx?dl=0&rlkey=lx2uo0h5vjja8ilphq7topp16

Instructions:

First run regression in excel putting column JnJ as y-axis (dependent variable) and column SP as x-axis (independent variable) to answer questions 2-6

Stock market returns The data le StocksMonthlyReturnsjata contains information on monthly returns of some stocks and the S&P 500 composite index. Before responding to the assignment questions, please run a simple regression JNJNSP which has JNJ as the dependent variable and SP as the only independent variable. (Note: Question 1 can be answered without running a regression.) 1. What is the correlation between the monthly returns of .lohnson&.lohnson stock (JNJ) and monthly returns of the 88513 500 composite index (SP)? 2. Which of the following is the equation of the regression line (\"bestt\" line) in the JNJNSP regression? O JNJ : 0.246*SP O JNJ : 0.496*SP O JNJ : 0.648*SP O JNJ : 0.007 + 0.648*SP O .TNJ : 0.496*SP W 0.048 O JNJ : 0.648*SP W 0.048 3. What is the standard error of regression (residual standard error) for the J NJ NSP regression? 4. Based on the JNJNSP regression7 how condent can one be that the beta for .lohnson&.lohnson is less than 0.75? (Hint: How condent can one be that the slope coeicient in the population model is less than 0.75?) 0 Less than 2.5% condent O At least 2.5% condent but less than 16% condent 0 At least 16% condent but less than 50% condent 0 At least 50% condent but less than 84% condent 0 At least 84% condent but less than 97.5% condent 0 At least 97.5% condent 5. Using the JNJNSP regression7 what is the point estimate for the .TNJ monthly return if the SP return in the same month will be +1%? 6. Based on the JNJNSP regression7 if the SP return in a month will be 1%7 how condent can one be that the JNJ return in that month will be positive? 0 Less than 2.5% condent 0 At least 2.5% condent but less than 16% condent 0 At least 16% condent but less than 50% condent 0 At least 50% condent but less than 84% condent 0 At least 84% condent but less than 97.5% condent 0 At least 97.5% condent