Download the data file at this link. The dataset contains the monthly stock prices of Amgen Inc with ticker AMGN and the S&P 500 Index with ticker AGSPC (we refer to the S&P 500 as the market) with starting date December 1995 and end date October 2020. Use the stock and market prices to create the monthly returns using the same formula we have used in previous assignments, that is, R(t) = 100 *(P(t) - P(t-1))/P(t-1). The following questions are related to the linear regression model in which the stock return, R(t), is the dependent variable and the market return, MARKET(C), the independent, that is: R(t) = beta0 + beta1 * MARKET(t) + error(t) NB: Your sample size is 298 Type 0.32 not .32 Type 0.30 not 0.3 Type only the first two decimals, no rounding Answer the following questions: Calculate the average stock return; Calculate the average market return: Calculate the sample standard deviation of the stock return; Calculate the sample standard deviation of the market return; Calculate the sample correlation coefficient between the stock and market return; Calculate the sample estimate of beta1: How much do you expect the stock return to change in a month when the market return changes by-297 Calculate the sample estimate of betao: What is the expected stock return in a month in which the market return is equal to -5%: if we calculated the return as R(t) = (P(1) - P(t-1)}/P(t-1), what would be the estimate of the slope beta1: AMGN Date Stock Market 1995-12-01 11.913882 615.929993 1996-01-01 12.064373 636.02002 1996-02-01 11.989124 640.429993 1996-03-01 11.663062 645.5 1996-04-01 11.537653 654.169983 1996-05-01 11.938964 669.119995 1996-06-01 10.835361 670.630005 1996-07-01 10.960773 639.950012 1996-08-01 11.688148 651.98999 1996-09-01 12.66634 687.330017 1996-10-01 12.302649 705.27002 1996-11-01 12.214864 757.02002 1996-12-01 10.910608 740.73999 1997-01-01 11.311918 786.159973 1997-02-01 12.265028 790.820007 1997-03-01 11.211592 757.119995 1997-04-01 11.813556 801.340027 1997-05-01 13.418793 848.280029 1997-06-01 11.663062 885.140015 1997-07-01 11.801015 954.309998 1997-08-01 9.944957 899.469971 1997-09-01 9.618894 947.280029 1997-10-01 9.882253 914.619995 1997-11-01 10.258479 955.400024 1997-12-01 10.860443 970.429993 1998-01-01 10.032745 980.280029 1998-02-01 10.659791 1049.339966 Download the data file at this link. The dataset contains the monthly stock prices of Amgen Inc with ticker AMGN and the S&P 500 Index with ticker AGSPC (we refer to the S&P 500 as the market) with starting date December 1995 and end date October 2020. Use the stock and market prices to create the monthly returns using the same formula we have used in previous assignments, that is, R(t) = 100 *(P(t) - P(t-1))/P(t-1). The following questions are related to the linear regression model in which the stock return, R(t), is the dependent variable and the market return, MARKET(C), the independent, that is: R(t) = beta0 + beta1 * MARKET(t) + error(t) NB: Your sample size is 298 Type 0.32 not .32 Type 0.30 not 0.3 Type only the first two decimals, no rounding Answer the following questions: Calculate the average stock return; Calculate the average market return: Calculate the sample standard deviation of the stock return; Calculate the sample standard deviation of the market return; Calculate the sample correlation coefficient between the stock and market return; Calculate the sample estimate of beta1: How much do you expect the stock return to change in a month when the market return changes by-297 Calculate the sample estimate of betao: What is the expected stock return in a month in which the market return is equal to -5%: if we calculated the return as R(t) = (P(1) - P(t-1)}/P(t-1), what would be the estimate of the slope beta1: AMGN Date Stock Market 1995-12-01 11.913882 615.929993 1996-01-01 12.064373 636.02002 1996-02-01 11.989124 640.429993 1996-03-01 11.663062 645.5 1996-04-01 11.537653 654.169983 1996-05-01 11.938964 669.119995 1996-06-01 10.835361 670.630005 1996-07-01 10.960773 639.950012 1996-08-01 11.688148 651.98999 1996-09-01 12.66634 687.330017 1996-10-01 12.302649 705.27002 1996-11-01 12.214864 757.02002 1996-12-01 10.910608 740.73999 1997-01-01 11.311918 786.159973 1997-02-01 12.265028 790.820007 1997-03-01 11.211592 757.119995 1997-04-01 11.813556 801.340027 1997-05-01 13.418793 848.280029 1997-06-01 11.663062 885.140015 1997-07-01 11.801015 954.309998 1997-08-01 9.944957 899.469971 1997-09-01 9.618894 947.280029 1997-10-01 9.882253 914.619995 1997-11-01 10.258479 955.400024 1997-12-01 10.860443 970.429993 1998-01-01 10.032745 980.280029 1998-02-01 10.659791 1049.339966
