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Monthly rates of return (%) of a mutual fund, the Cheetah Fund, were regressed on those of the S&P500. The fitted equation for the fitted
Monthly rates of return (%) of a mutual fund, the Cheetah Fund, were regressed on those of the S&P500. The fitted equation for the fitted value Y of Y was = 0.050 + 0.100 L + 0.600 X + 0.700 XL where Y = rate of return of Cheetah Fund . X = rate of return of S&P500 and L = 1 if Bull market, 0 if Bear market. What is equation (*) in a Bear Market ? What is equation (*) in a Bull Market ? What is the estimate of the Cheetah Fund's "beta" in a Bear market? What is the estimate of the Cheetah Fund's "beta" in a Bull market ? What is the predicted value of Y if X = 0 and L = 0
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