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(Spreadsheet question) Use the same dataset for SP 500 Composite Index and the Caterpillarstock. Calculate the arithmetic average rates return and standard deviations Calculate the
- (Spreadsheet question) Use the same dataset for SP 500 Composite Index and the Caterpillarstock.
- Calculate the arithmetic average rates return and standard deviations
- Calculate the security characteristic line for the Caterpillar stock, and report the regression results. Plot the SCL for the Caterpillar stock, and also the historical returns on the same graph.
- If the average premium for SP 500 is 0.3%, what is the average premium for the Caterpillar stock? Use only the results from the regression output.
- What are the systematic risk and unsystematic risk in the Caterpillar stock? Use only the regression outputs to do the calculations. How do you interpret this numbers?
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