Question

1 Approved Answer

Posted on Oct 02, 2024

Given the attached spreadsheet information, what is the alpha of GE for the periods indicated? Please explain how you got your answer. RF Risk-Free Month

Given the attached spreadsheet information, what is the alpha of GE for the periods indicated? Please explain how you got your answer. image text in transcribed

RF Risk-Free Month 201611 0.01 201612 0.03 201701 0.04 201702 0.04 201703 0.03 201704 0.05 201705 0.06 201706 0.06 201707 0.07 - 201708 0.09 . 201709 201710 0.09 0.09 0.08 0.09 S&P 500 Historical Data GE Historical Data Date Adj Close Date Adj Close 11/1/2016 2,198.81 11/1/2016 218.4347 12/1/2016 2,238.83 12/1/2016 224.3997 1/1/2017 2,278.87 1/1/2017 212.4946 2/1/2017 2,363.64 2/1/2017 213.2816 3/1/2017 2,362.72 3/1/2017 214.9106 4/1/2017 2,384.20 4/1/2017 209.0691 5/1/2017 2,411.80 5/1/2017 197.4581 6/1/2017 2,423.41 6/1/2017 194.7898 7/1/2017 2,470.30 7/1/2017 186.2514 8/1/2017 2,471.65 8/1/2017 178.5424 9/1/2017 2,519.36 9/1/2017 175.8516 10/1/2017 2,575.26 10/1/2017 148.0806 11/1/2017 2,647.58 11/1/2017 134.345 12/1/2017 2,673.61 12/1/2017 128.175 1/1/2018 2,823.81 1/1/2018 119.5931 2/1/2018 2,713.83 2/1/2018 104.3573 3/1/2018 2,640.87 3/1/2018 100.5229 4/1/2018 2,648.05 4/1/2018 104.9227 5/1/2018 2,705.27 5/1/2018 104.9973 6/1/2018 2,718.37 6/1/2018 101.4924 7/1/2018 2,816.29 7/1/2018 102.5437 8/1/2018 2,901.52 8/1/2018 97.35254 9/1/2018 2,913.98 9/1/2018 84.93896 10/1/2018 2,711.74 10/1/2018 76.71039 11/1/2018 2,760.17 11/1/2018 56.96317 12/1/2018 2,506.85 12/1/2018 57.49482 - 201711 201712 - 201801 0.11 201802 0.11 201803 0.12 201804 0.14 201805 0.14 201806 0.14 201807 0.16 201808 0.16 0.15 . 201809 201810 0.19 - 201811 0.18 201812 0.19 0.21 0.18 0.19 201901 201902 201903 201904 201905 201906 201907 201908 201909 201910 201911 201912 0.21 0.21 0.18 0.19 0.16 0.18 0.15 0.12 0.14 202001 0.13 202002 1/1/2019 2,704.10 1/1/2019 77.27224 2/1/2019 2,784.49 2/1/2019 82.18238 3/1/2019 2,834.40 3/1/2019 79.01849 4/1/2019 2,945.83 4/1/2019 80.52745 5/1/2019 2,752.06 5/1/2019 74.74721 6/1/2019 2,941.76 6/1/2019 83.14043 7/1/2019 2,980.38 7/1/2019 82.82416 8/1/2019 2,926.46 8/1/2019 65.38749 9/1/2019 2,976.74 9/1/2019 70.85626 10/1/2019 3,037.56 10/1/2019 79.18457 11/1/2019 3,140.98 11/1/2019 89.41986 12/1/2019 3,230.78 12/1/2019 88.54709 1/1/2020 3,225.52 1/1/2020 98.87191 2/1/2020 2,954.22 2/1/2020 86.40373 3/1/2020 2,584.59 3/1/2020 63.05567 4/1/2020 2,912.43 4/1/2020 54.05596 5/1/2020 3,044.31 5/1/2020 52.2276 6/1/2020 3,100.29 6/1/2020 54.29443 7/1/2020 3,271.12 7/1/2020 48.32524 8/1/2020 3,500.31 8/1/2020 50.47479 9/1/2020 3,363.00 9/1/2020 49.59905 10/1/2020 3,269.96 10/1/2020 59.17066 11/1/2020 3,621.63 11/1/2020 81.18024 12/1/2020 3,756.07 12/1/2020 86.12442 1/1/2021 3,714.24 1/1/2021 85.24583 2/1/2021 3,811.15 2/1/2021 100.092 3/1/2021 3,972.89 3/1/2021 104.8013 4/1/2021 4,181.17 4/1/2021 104.7987 202003 202004 202005 202006 0.12 0.12 0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 202007 202008 202009 202010 0 202011 202012 202101 202102 202103 202104 202105 0 0 0 n 5/1/2021 Man 11 5/1/2021 112 2071 0 202105 202106 202107 202108 202109 202110 0 0 0* 5/1/2021 4,204.11 5/1/2021 112.3071 6/1/2021 4,297.50 6/1/2021 107.5145 7/1/2021 4,395.26 7/1/2021 103.5195 8/1/2021 4,522.68 8/1/2021 105.3281 9/1/2021 4,307.54 9/1/2021 102.9499 10/1/2021 4,438.26 10/1/2021 102.74 0* RF Risk-Free Month 201611 0.01 201612 0.03 201701 0.04 201702 0.04 201703 0.03 201704 0.05 201705 0.06 201706 0.06 201707 0.07 - 201708 0.09 . 201709 201710 0.09 0.09 0.08 0.09 S&P 500 Historical Data GE Historical Data Date Adj Close Date Adj Close 11/1/2016 2,198.81 11/1/2016 218.4347 12/1/2016 2,238.83 12/1/2016 224.3997 1/1/2017 2,278.87 1/1/2017 212.4946 2/1/2017 2,363.64 2/1/2017 213.2816 3/1/2017 2,362.72 3/1/2017 214.9106 4/1/2017 2,384.20 4/1/2017 209.0691 5/1/2017 2,411.80 5/1/2017 197.4581 6/1/2017 2,423.41 6/1/2017 194.7898 7/1/2017 2,470.30 7/1/2017 186.2514 8/1/2017 2,471.65 8/1/2017 178.5424 9/1/2017 2,519.36 9/1/2017 175.8516 10/1/2017 2,575.26 10/1/2017 148.0806 11/1/2017 2,647.58 11/1/2017 134.345 12/1/2017 2,673.61 12/1/2017 128.175 1/1/2018 2,823.81 1/1/2018 119.5931 2/1/2018 2,713.83 2/1/2018 104.3573 3/1/2018 2,640.87 3/1/2018 100.5229 4/1/2018 2,648.05 4/1/2018 104.9227 5/1/2018 2,705.27 5/1/2018 104.9973 6/1/2018 2,718.37 6/1/2018 101.4924 7/1/2018 2,816.29 7/1/2018 102.5437 8/1/2018 2,901.52 8/1/2018 97.35254 9/1/2018 2,913.98 9/1/2018 84.93896 10/1/2018 2,711.74 10/1/2018 76.71039 11/1/2018 2,760.17 11/1/2018 56.96317 12/1/2018 2,506.85 12/1/2018 57.49482 - 201711 201712 - 201801 0.11 201802 0.11 201803 0.12 201804 0.14 201805 0.14 201806 0.14 201807 0.16 201808 0.16 0.15 . 201809 201810 0.19 - 201811 0.18 201812 0.19 0.21 0.18 0.19 201901 201902 201903 201904 201905 201906 201907 201908 201909 201910 201911 201912 0.21 0.21 0.18 0.19 0.16 0.18 0.15 0.12 0.14 202001 0.13 202002 1/1/2019 2,704.10 1/1/2019 77.27224 2/1/2019 2,784.49 2/1/2019 82.18238 3/1/2019 2,834.40 3/1/2019 79.01849 4/1/2019 2,945.83 4/1/2019 80.52745 5/1/2019 2,752.06 5/1/2019 74.74721 6/1/2019 2,941.76 6/1/2019 83.14043 7/1/2019 2,980.38 7/1/2019 82.82416 8/1/2019 2,926.46 8/1/2019 65.38749 9/1/2019 2,976.74 9/1/2019 70.85626 10/1/2019 3,037.56 10/1/2019 79.18457 11/1/2019 3,140.98 11/1/2019 89.41986 12/1/2019 3,230.78 12/1/2019 88.54709 1/1/2020 3,225.52 1/1/2020 98.87191 2/1/2020 2,954.22 2/1/2020 86.40373 3/1/2020 2,584.59 3/1/2020 63.05567 4/1/2020 2,912.43 4/1/2020 54.05596 5/1/2020 3,044.31 5/1/2020 52.2276 6/1/2020 3,100.29 6/1/2020 54.29443 7/1/2020 3,271.12 7/1/2020 48.32524 8/1/2020 3,500.31 8/1/2020 50.47479 9/1/2020 3,363.00 9/1/2020 49.59905 10/1/2020 3,269.96 10/1/2020 59.17066 11/1/2020 3,621.63 11/1/2020 81.18024 12/1/2020 3,756.07 12/1/2020 86.12442 1/1/2021 3,714.24 1/1/2021 85.24583 2/1/2021 3,811.15 2/1/2021 100.092 3/1/2021 3,972.89 3/1/2021 104.8013 4/1/2021 4,181.17 4/1/2021 104.7987 202003 202004 202005 202006 0.12 0.12 0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 202007 202008 202009 202010 0 202011 202012 202101 202102 202103 202104 202105 0 0 0 n 5/1/2021 Man 11 5/1/2021 112 2071 0 202105 202106 202107 202108 202109 202110 0 0 0* 5/1/2021 4,204.11 5/1/2021 112.3071 6/1/2021 4,297.50 6/1/2021 107.5145 7/1/2021 4,395.26 7/1/2021 103.5195 8/1/2021 4,522.68 8/1/2021 105.3281 9/1/2021 4,307.54 9/1/2021 102.9499 10/1/2021 4,438.26 10/1/2021 102.74 0*