Question
mult R .739565 R squared .546956 adj R squa .542515 std div .018088 observation 60 coeff error t stat p-value intercept .003369 .001797 -1.87456 .063714
mult R | .739565 |
R squared | .546956 |
adj R squa | .542515 |
std div | .018088 |
observation | 60 |
coeff | error | t stat | p-value | |
intercept | .003369 | .001797 | -1.87456 | .063714 |
x var | .820200 | .103829 | 11.09702 | 3.0714 |
represents a linear regression (ubove) of the returns of Costco stock on the returns of the SP500 (the security characteristic line). 60 months of returns. 1- What is the beta for Costco? If the SP500 expected return increases by 50 basis points (0.0050), then what is the change in the predicted return on Costco? 2- What is the correlation between Costco and the SP500? What percentage of Costcos return valuation is systematic? What percentage is unsystematic 3- Is the standard deviation of returns for the SP500 is equal to 15%, what is the standard deviation of returns on Costco?
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