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Hello please answer the below questions using the info from above. magine you wish to estimate the betas for two investments, A and B. You
Hello please answer the below questions using the info from above.
magine you wish to estimate the betas for two investments, A and B. You have gathered the following return data, EEB, for the market and for each of the investments over the past 10 years, 2008-2017 a. On a set of market return (x-axis)-investment return (y-axis) axes, use the data to draw the characteristic lines for investments A and B on the same set of axes. b. Use the characteristic lines from part a to estimate the betas for investments A and B. a. The equation of the line for asset A is yXMarket. (Round to two decimal places) Investment Market Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 16.2% 10.5% 9.9% 3.4% 2.1% 30.2% 22.9% 28.5% 18.1% 25.9% 10.9% 5.5% 1.2% -13.6% -4.3% -13% 15.4% 10.6% 15.6% 8.5% 13.7% -4.4% 3.3% 19.8% 14.7% 18.8% 1 1.3% 16.4% a. The equation of the line for asset A is yA.9 X6.04. (Round to two decimal places.) The equation of the line for asset B is y0.93 XXMarket+12.88. (Round to two decimal places.) b. The beta of asset A is 0.79. (Round to two decimal places.) The beta of asset B is 0.93. (Round to two decimal places.) magine you wish to estimate the betas for two investments, A and B. You have gathered the following return data, EEB, for the market and for each of the investments over the past 10 years, 2008-2017 a. On a set of market return (x-axis)-investment return (y-axis) axes, use the data to draw the characteristic lines for investments A and B on the same set of axes. b. Use the characteristic lines from part a to estimate the betas for investments A and B. a. The equation of the line for asset A is yXMarket. (Round to two decimal places) Investment Market Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 16.2% 10.5% 9.9% 3.4% 2.1% 30.2% 22.9% 28.5% 18.1% 25.9% 10.9% 5.5% 1.2% -13.6% -4.3% -13% 15.4% 10.6% 15.6% 8.5% 13.7% -4.4% 3.3% 19.8% 14.7% 18.8% 1 1.3% 16.4% a. The equation of the line for asset A is yA.9 X6.04. (Round to two decimal places.) The equation of the line for asset B is y0.93 XXMarket+12.88. (Round to two decimal places.) b. The beta of asset A is 0.79. (Round to two decimal places.) The beta of asset B is 0.93. (Round to two decimal places.)
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