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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
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
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