Intro

The following table shows rates of return for a mutual fund and the market portfolio (S&P 500).

	A	B	C
1	Year	Fund	Market
2	1	14%	13%
3	2	-24%	-14%
4	3	-6%	-7%
5	4	5%	28%
6	5	14%	8%
7	6	16%	8%

Attempt 1/3 for 10 pts.

Part 1

Regress the returns on the stock on the returns on the S&P 500. What is the beta of the fund, using the industry model (not subtracting the risk-free rate), i.e., the slope coefficient of the regression?

2+ Decimal Answer