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RESIDUAL OUTPUT begin{tabular}{|l|l|l|} hline & multicolumn{1}{|c|}{ A } & multicolumn{1}{|c|}{ B } hline 1 & SUMMAAY OUTPUT hline 2 & & hline

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RESIDUAL OUTPUT \begin{tabular}{|l|l|l|} \hline & \multicolumn{1}{|c|}{ A } & \multicolumn{1}{|c|}{ B } \\ \hline 1 & SUMMAAY OUTPUT \\ \hline 2 & & \\ \hline 3 & Regression Statistics \\ \hline 4 & Multiple & 0.044278 \\ \hline 5 & R Square & 0.001960 \\ \hline 6 & Adjusted & 0.01524t \\ \hline 7 & Standard & 9.177526 \\ \hline 8 & Observati & 60 \\ \hline 9 & & \\ \hline \end{tabular} RESIDUAL OUTPUT redictedResidualsdardResidualsbservatio \begin{tabular}{rrrr|} \hline 1 & 2.478670 & 7.221329 & 0.793603 \\ 2 & 2.627533 & 0.62753:0.06896 \end{tabular} 232.6275330.62753:0.068962.2762583.77625{0.414996 RESIDUAL OUTPUT RESIDUAL OUTPUT 2. (a) Using regression against the S\&P 500 index, estimate beta for each of the 6 stocks above. (b) Based on the 30-year T-Bond rate your beta estimate, a 7% market risk premium, and the CAPM, what is the required return for each of the 6 stocks above? (c) For each stock, dr.) w a preliminary conclusion on whether to take a long or short position. RESIDUAL OUTPUT \begin{tabular}{|l|l|l|} \hline & \multicolumn{1}{|c|}{ A } & \multicolumn{1}{|c|}{ B } \\ \hline 1 & SUMMAAY OUTPUT \\ \hline 2 & & \\ \hline 3 & Regression Statistics \\ \hline 4 & Multiple & 0.044278 \\ \hline 5 & R Square & 0.001960 \\ \hline 6 & Adjusted & 0.01524t \\ \hline 7 & Standard & 9.177526 \\ \hline 8 & Observati & 60 \\ \hline 9 & & \\ \hline \end{tabular} RESIDUAL OUTPUT redictedResidualsdardResidualsbservatio \begin{tabular}{rrrr|} \hline 1 & 2.478670 & 7.221329 & 0.793603 \\ 2 & 2.627533 & 0.62753:0.06896 \end{tabular} 232.6275330.62753:0.068962.2762583.77625{0.414996 RESIDUAL OUTPUT RESIDUAL OUTPUT 2. (a) Using regression against the S\&P 500 index, estimate beta for each of the 6 stocks above. (b) Based on the 30-year T-Bond rate your beta estimate, a 7% market risk premium, and the CAPM, what is the required return for each of the 6 stocks above? (c) For each stock, dr.) w a preliminary conclusion on whether to take a long or short position

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