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The table below shows regression results to estimate alphas and betas of four stocks Stock Coefficients t Stat A Intercept Coef Variable 1 0.0300 1.2000
The table below shows regression results to estimate alphas and betas of four stocks
Stock |
| Coefficients | t Stat |
A | Intercept Coef Variable 1 | 0.0300 1.2000 | 2.6000 5.8000 |
Stock |
| Coefficients | t Stat |
B | Intercept Coef Variable 1 | 0.0200 0.9100 | 1.6400 3.8000 |
Stock |
| Coefficients | t Stat |
C | Intercept Coef Variable 1 | -0.0400 0.8000 | -3.1200 4.2232 |
Stock |
| Coefficients | t Stat |
D | Intercept Coef Variable 1 | -0.0100 1.1000 | -1.1200 5.4330 |
1. Which stock has the highest market risk? (0.5pt) 2. Which stock is significantly overpriced according to the CAPM? (0.5pt)
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