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Question 1: How do you calculate with this data set? (please show work) A B C D E F G H 1 J S&P500 index
Question 1: How do you calculate with this data set? (please show work)
A B C D E F G H 1 J S&P500 index Treasury Bill - secondary market rate (%) 0.14 1 0.14 0.15 Company A Company B Company C Company D (adjusted (adjusted (adjusted (adjusted close) close) close) close) $37 $11 $48 $33 $42 $11 $50 $34 $43 $11 $56 $34 $42 $10 $59 $34 $39 $10 $58 $35 $41 $10 $61 $36 $37 $10 $58 $36 $37 $9 $57 $37 0.13 2 January 3 February 4 March 5 April 6 May 7 June 8 July 9 August 10 September 11 October 0.10 $1,982 $2,114 $2,164 $2,239 $2,239 $2,306 $2,280 $2,242 $2,196 $2,077 0.06 0.04 0.04 $34 $8 $56 $36 0.04 $28 $8 $52 $37 0.02 12 13 14 Use the formula 15 Rt Rft = a; + B: [Rmt Rft] +Et 16 17 18 to estimate the value of using a regression. Here Rt is the return on the stock and Rft is the risk-free rate for the same period. Rmt is the return on a stock market index (in this case the S&P 500 index). a; is the regression intercept, and B; is the slope (and the stock's estimated beta). Et represents the residuals for the regression. 19 20 21 A B C D E F G H 1 J S&P500 index Treasury Bill - secondary market rate (%) 0.14 1 0.14 0.15 Company A Company B Company C Company D (adjusted (adjusted (adjusted (adjusted close) close) close) close) $37 $11 $48 $33 $42 $11 $50 $34 $43 $11 $56 $34 $42 $10 $59 $34 $39 $10 $58 $35 $41 $10 $61 $36 $37 $10 $58 $36 $37 $9 $57 $37 0.13 2 January 3 February 4 March 5 April 6 May 7 June 8 July 9 August 10 September 11 October 0.10 $1,982 $2,114 $2,164 $2,239 $2,239 $2,306 $2,280 $2,242 $2,196 $2,077 0.06 0.04 0.04 $34 $8 $56 $36 0.04 $28 $8 $52 $37 0.02 12 13 14 Use the formula 15 Rt Rft = a; + B: [Rmt Rft] +Et 16 17 18 to estimate the value of using a regression. Here Rt is the return on the stock and Rft is the risk-free rate for the same period. Rmt is the return on a stock market index (in this case the S&P 500 index). a; is the regression intercept, and B; is the slope (and the stock's estimated beta). Et represents the residuals for the regression. 19 20 21Step by Step Solution
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