Question
Pick a NYSE/NASDAQ stock and estimate its beta and expected return based on historical return data. Explain your choice of time period, frequency, and index
Pick a NYSE/NASDAQ stock and estimate its beta and expected return based on historical return data. Explain your choice of time period, frequency, and index proxy for your beta estimation. Explain choice of the risk-free rate and market premium for your expected return calculation. Show the results of your beta estimation. Interpret the R squared, intercept and slope coefficients. Be sure to discuss the importance of the standard error of the slope coefficient. If you were told that the actual return of the stock over the next year will be 10\%, would you recommend buying the stock today? Why?
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