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Posted on Oct 05, 2024

Query: You need to find the returns first before running a linear regression (C.L., 2022). (A) Find the monthly return of SYMBOL PRICE and NASDAQ

Query: "You need to find the returns first before running a linear regression" (C.L., 2022).

(A) Find the monthly return of "SYMBOL" PRICE and NASDAQ CLOSING PRICE.

(B) Elaborate HOW TO "run a liner regression" to estimate beta of "SYMBOL" PRICE.

(C) Use CORREL ("SYMBOL" return, NASDAQ return) x STDEV(Standard deviation of "SYMBOL" return)/ STDEV (standard deviation of NASDAQ return) to find beta of "SYMBOL".

(D) Use the security market line or capital asset pricing model to find the required rate of return of "SYMBOL", assuming market return is 12% and risk free rate is 3%.

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1 2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 DATE 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/2016 10/1/2016 11/1/2016 12/1/2016 1/1/2017 2/1/2017 3/1/2017 4/1/2017 5/1/2017 6/1/2017 7/1/2017 8/1/2017 9/1/2017 10/1/2017 11/1/2017 12/1/2017 1/1/2018 2/1/2018 3/1/2018 4/1/2018 5/1/2018 6/1/2018 7/1/2018 8/1/2018 9/1/2018 10/1/2018 11/1/2018 12/1/2018 1/1/2019 2/1/2019 3/1/2019 4/1/2019 5/1/2019 6/1/2019 7/1/2019 8/1/2019 9/1/2019 10/1/2019 11/1/2019 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2021 2/1/2021 3/1/2021 4/1/2021 SYMBOL PRICE NASDAQ CLOSING PRICE 722.79 4948.05 715.62 4842.67 758.81 5162.13 769.16 5213.22 837.31 5312.00 789.82 5189.14 750.57 5323.68 749.87 5383.12 823.48 5614.79 845.04 5825.44 886.54 5911.74 924.99 6047.61 994.62 6198.52 968.00 6140.42 987.78 6348.12 980.60 6428.66 961.35 6495.96 1105.28 6727.67 1176.75 6873.97 1169.47 6903.39 1450.89 7411.48 1512.45 7273.01 1447.34 7063.45 1566.13 7066.27 1629.62 7442.12 1699.80 7510.30 1777.44 7671.79 2012.71 8109.54 2003.00 8046.35 1598.01 7305.90 1690.17 7330.54 1501.97 6635.28 1718.73 7281.74 1639.83 7532.53 1780.75 7729.32 1926.52 8095.39 1775.07 7453.15 1893.63 8006.24 1866.78 8175.42 1776.29 7962.88 1735.91 7999.34 1776.66 8292.36 1800.80 8665.47 1847.84 8972.60 2008.72 9150.94 1883.75 8567.37 1949.72 7700.10 2474.00 8889.55 2442.37 9489.87 2758.82 10058.77 3164.68 10745.27 3450.96 11775.46 3148.73 11167.51 3036.15 10911.59 3168.04 12198.74 3256.93 12888.28 3206.20 13070.69 3092.93 13192.35 3094.08 13246.87 3279.39 13698.38 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61