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please show work and formulas in excel, Thanks! question D is to determine if alpha is significant. The Excel file Stock Return Data contains monthly
please show work and formulas in excel, Thanks!
question D is to determine if alpha is significant.
The Excel file Stock Return Data contains monthly data for several stocks and the S\&P 500 Index (i.e., the market). a. Compute the equation of the Characteristic Line for Cin. b. Explain what the intercept term in this equation measures relative to the market return. c. Explain what the slope term in this equation measures relative to the market return. d. Conduct a complete hypothesis test to determine if Significant. e. Conduct a complete hypothesis test to determine if is Significant. f. Compute the R2 value associated with this equation. g. Explain what R2 measures for this equation. h. Construct a graph of the Characteristic Line for Cin. i. On this graph (using EXCEL's graphing features) include a trendline, the computed equation, and the R2 value. ii. Label the axes and include a title for the graph. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Stock Return Data } & \multirow[b]{2}{*}{ Dell } & \multirow[b]{2}{*}{ INTC } & \multirow[b]{2}{*}{ MSFT } & \multirow[b]{2}{*}{ NT } & \multirow[b]{2}{*}{ SAP 500} \\ \hline Month & Cin & & & & & \\ \hline 1 & 0.0715% & 1.3234% & 1.2081% & 0.5269% & 0.0902% & 0.5583% \\ \hline 2 & 0.0340% & 2.9219% & 0.1580% & 0.5630% & 0.3118% & 0.1083% \\ \hline 3 & 0.2371% & 1.8305% & 0.3107% & 1.0129% & 0.1718% & 0.2167% \\ \hline 4 & 0.2541% & 0.9551% & 0.4490% & 0.3949% & 0.3788% & 0.2083% \\ \hline 5 & 0.4039% & 2.4576% & 1.8457% & 2.1554% & 1.4552% & 0.8167% \\ \hline 6 & 0.1050% & 1.2289% & 0.2155% & 0.3423% & 0.0376% & 0.0583% \\ \hline 7 & 0.4847% & 0.5767% & 0.4437% & 1.0417% & 0.1508% & 0.0250% \\ \hline 8 & 0.6000% & 0.0000% & 2.0824% & 0.6266% & 0.9984% & 0.7500% \\ \hline 9 & 0.0718% & 2.1310% & 0.0320% & 0.2034% & 0.1745% & 0.4083% \\ \hline 10 & 0.4252% & 1.7929% & 0.0626% & 0.0990% & 1.0696% & 0.0333% \\ \hline 11 & 0.1406% & 1.9572% & 0.9950% & 1.1111% & 0.1975% & 3% \\ \hline 12 & 0.0691% & 3.4138% & 0.2219% & 0.3463% & 0.8089% & 0.2250% \\ \hline 13 & 0.0721% & 1.8595% & 1.5696% & 2.5331% & 0.1475% & 0.3667% \\ \hline 14 & 0.3884% & 0.9652% & 0.3643% & 0.4776% & 0.4880% & 0.6000% \\ \hline 15 & 0.3712% & 1.0741% & 0.1748% & 0.1908% & 0.5675% & 0.2000% \\ \hline 16 & 0.0285% & 1.4988% & 0.4461% & 0.5594% & 0.9627% & 0.0250% \\ \hline 17 & 0.0000% & 0.4894% & 1.0997% & 0.9048% & 0.5953% & 0.3583% \\ \hline 18 & 0.0984% & 0.0840% & & & & \\ \hline 19 & 0.5205% & 1.4466% & 0.0900% & 0.6576% & 0.7420% & 0.3917% \\ \hline 20 & 0.0311% & 1.1213% & 0.4431% & 1.3322% & 0.0262% & 0.2000% \\ \hline 21 & 0.4957% & 0.1937% & 1.2207% & 0.3664% & 0.1306% & 0.1333% \\ \hline 22 & 0.0001% & 2.1235% & 0.3194% & 0.4566% & 0.5573% & 0.1083% \\ \hline 23 & 0.6431% & 0.7523% & 1.6261% & 1.1996% & .2627% & 0.9500% \\ \hline 24 & 0.5185% & 2.0326% & 1.8509% & 0.6742% & 0.3241% & 0.1583% \\ \hline 25 & 0.0281% & 0.7856% & 0.5037% & 0.2252% & 0.2450% & 0.1083% \\ \hline 26 & 0.2245% & 0.3578% & 1.0826% & 0.3373% & 0.5627% & 0.1667% \\ \hline 27 & 0.2872% & 0.6884% & 0.2640% & 0.5801% & 0.7892% & 0.2417% \\ \hline 28 & 0.5385% & 0.1971% & 0.5453% & 0.8125% & 0.3335% & 0.0417% \\ \hline 29 & 0.0000% & 2.7129% & 1.1664% & 1.1020% & 0.4806% & 0.1250% \\ \hline 30 & 0.0283% & 0.8139% & 0.2441% & 0.2003% & 0.2092% & 0.1667% \\ \hline 31 & 0.2825% & 1.1153% & 1.1136% & 0.6711% & 0.5513% & 0.1000% \\ \hline 32 & 0.1085% & 1.6003% & 0.2218% & 0.8542% & 1.8371% & 0.0333% \\ \hline 33 & 0.1408% & 0.6408% & 0.4938% & 0.4107% & 0.6183% & 0.2833% \\ \hline 34 & 0.2147% & 2.5514% & 1.8066% & 0.6935% & 0.2753% & 0.1083% \\ \hline 35 & 0.2663% & 0.3033% & 1.8915% & 0.1098% & 0.0484% & 0.0583% \\ \hline 36 & 0.2888% & 2.5449% & 0.7612% & 0.3010% & 0.0963% & 0.1167% \\ \hline 37 & 0.0809% & 1.3996% & 1.3799% & 0.6944% & 0.2551% & 0.2250% \\ \hline 38 & 0.5719% & 1.8568% & 0.0654% & 0.4162% & 2.1052% & 0.0250% \\ \hline \end{tabular} Step by Step Solution
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