Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

identify alpha, beta and determine whether the stock is cyclical or defensive You run a CAPM regression of a stock's excess returns versus a market

image text in transcribed

identify alpha, beta and determine whether the stock is cyclical or defensive

You run a CAPM regression of a stock's excess returns versus a market index excess returns and find the following: Coefficients Standard t Stat P-value Lower 95% Upper 95% Error Intercept 1.348 0.924 1.459 0.150 -0.502 3.198 Mkt-Rf 1.451 0.322 4.508 0.000 0.807 2.096 Based on the data: identify alpha, beta and determine whether the stock is cyclical or defensive

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions