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From where did we get the 1.96? You are analyzing Tiffany, an upscale retailer and find that the regression estimate of the firm's beta is
From where did we get the 1.96?
You are analyzing Tiffany, an upscale retailer and find that the regression estimate of the firm's beta is 1; the standard error for the beta estimate is 0.25. The company has a debt/assets ratio of 20% and is subject to 40% tax rate. Assume also that risk free rate is 6% and the market risk premium is 5.5%. 1-what is the 95% confidence interval for the estimated beta? -0.25 to 2.25 a- 0 to 2 b- 0.25 to 1.75 C- d- 0.5 to 1.5 0.75 to 1.25 e- ANSWER: Range is 1-0.25 1.96 to 1+0.25 1.96 that is 0.51 to 1.49 From where did we get the 1.96 aboveStep by Step Solution
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