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Instructions: Perform CAPM regression for XYZ Company based on the stock returns, market ( S&P 5 0 0 ) returns, and risk freee rate data
Instructions: Perform CAPM regression for XYZ Company based on the stock returns, market S&P returns, and risk freee rate data
shown below. Use the slope function to determine XYZs beta slope function and alpha intercept function
Answer the following questions:
Based on your regression analysis, does XYZ Company have more or less systematic risk than that of the market?
Should XYZ Company's fair value return be more or less than that of the market S&P Explain.
Calculate the annualized alpha using the beta and the annualized returns of XYZ S&P and TBills. Note: you CANNOT multiply the alpha from the intercept by That won't work!
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CAPM Regression Graph for XYZ Stock
Q: Annualized Alpha Solution Do not hard code calculation use absolute & relative cell references
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