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ntage in Per-Share Market Value of Berkshire nange in S&P 500 with Dividends Included Year 2010 .... 2011 2012 .. 2013 2014 ... 21.4 (4.7)

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ntage in Per-Share Market Value of Berkshire nange in S&P 500 with Dividends Included Year 2010 .... 2011 2012 .. 2013 2014 ... 21.4 (4.7) 16.8 32.7 27.0 (12.5) 23.4 21.9 2.8 11.0 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 (4.4) 31.5 2015 2016 .... 2017 2018 2019 Berkshire Hathaway (ticker: BRK/A) is an American multinational conglomerate holding company headquartered in Omaha, Nebraska. The company is known for its control and leadership by Warren Buffett. The data in the table above show the annual rate of return, in percentage, for BRK/A and the S&P 500 index with dividends included for the 10 year period spanning 2010 to 2019. The risk-free rate is zero. Note that the numbers in parenthesis denote negative rates of return, and BRK/A does not pay a dividend. You are asked to model the annual returns for BRK/A using a one-factor model, with the S&P 500 index annual returns with dividends included as the one factor as follows: 1BRK/A = a + Brs&P500+ Find the optimal values for a and B, using all the data in the table, such that the total squared error is minimized, where the total squared error is equal to e k=1 What is the value of B? Please round your numerical answer to four decimal places. ntage in Per-Share Market Value of Berkshire nange in S&P 500 with Dividends Included Year 2010 .... 2011 2012 .. 2013 2014 ... 21.4 (4.7) 16.8 32.7 27.0 (12.5) 23.4 21.9 2.8 11.0 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 (4.4) 31.5 2015 2016 .... 2017 2018 2019 Berkshire Hathaway (ticker: BRK/A) is an American multinational conglomerate holding company headquartered in Omaha, Nebraska. The company is known for its control and leadership by Warren Buffett. The data in the table above show the annual rate of return, in percentage, for BRK/A and the S&P 500 index with dividends included for the 10 year period spanning 2010 to 2019. The risk-free rate is zero. Note that the numbers in parenthesis denote negative rates of return, and BRK/A does not pay a dividend. You are asked to model the annual returns for BRK/A using a one-factor model, with the S&P 500 index annual returns with dividends included as the one factor as follows: 1BRK/A = a + Brs&P500+ Find the optimal values for a and B, using all the data in the table, such that the total squared error is minimized, where the total squared error is equal to e k=1 What is the value of B? Please round your numerical answer to four decimal places

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