Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The table displays estimates of a 2-factor model for GE, AAPL, WMT, and AMZN. The market risk premium is 5%, the financial intermediary risk premium

image text in transcribedimage text in transcribed

The table displays estimates of a 2-factor model for GE, AAPL, WMT, and AMZN. The market risk premium is 5%, the financial intermediary risk premium is 12%, and the risk-free rate is 2%. GE AAPL WMT AMZN Estimate p-value Estimate p-value Estimate p-value Estimate p-value -7.2% 0.00 3.1% 0.07 1.1% 0.52 5.6% 0.02 Intercept Mkt-Rf 1.2 0.00 1.2 0.00 0.3 0.06 1.1 0.00 Financial Intermediary 0.1 0.06 -0.1 0.50 -0.7 0.00 -0.3 0.04 Using a 5% significance level, which stocks have significant exposure to the financial intermediary factor? (Select all that apply.) GE AAPL WMT AMZN The table displays estimates of a 2-factor model for GE, AAPL, WMT, and AMZN. The market risk premium is 5%, the financial intermediary risk premium is 12%, and the risk-free rate is 2%. GE AAPL WMT AMZN Estimate p-value Estimate p-value Estimate p-value Estimate p-value Intercept -7.2% 0.00 3.1% 0.07 1.1% 0.52 5.6% 0.02 Mkt-Rf 1.2 0.00 1.2 0.00 0.3 0.06 1.1 0.00 Financial Intermediary 0.1 0.06 -0.1 0.50 -0.7 0.00 -0.3 0.04 Using a 5% significance level, which stocks have significant two-factor alphas? (Select all that apply.) GE AAPL WMT AMZN The table displays estimates of a 2-factor model for GE, AAPL, WMT, and AMZN. The market risk premium is 5%, the financial intermediary risk premium is 12%, and the risk-free rate is 2%. GE AAPL WMT AMZN Estimate p-value Estimate p-value Estimate p-value Estimate p-value -7.2% 0.00 3.1% 0.07 1.1% 0.52 5.6% 0.02 Intercept Mkt-Rf 1.2 0.00 1.2 0.00 0.3 0.06 1.1 0.00 Financial Intermediary 0.1 0.06 -0.1 0.50 -0.7 0.00 -0.3 0.04 Using a 5% significance level, which stocks have significant exposure to the financial intermediary factor? (Select all that apply.) GE AAPL WMT AMZN The table displays estimates of a 2-factor model for GE, AAPL, WMT, and AMZN. The market risk premium is 5%, the financial intermediary risk premium is 12%, and the risk-free rate is 2%. GE AAPL WMT AMZN Estimate p-value Estimate p-value Estimate p-value Estimate p-value Intercept -7.2% 0.00 3.1% 0.07 1.1% 0.52 5.6% 0.02 Mkt-Rf 1.2 0.00 1.2 0.00 0.3 0.06 1.1 0.00 Financial Intermediary 0.1 0.06 -0.1 0.50 -0.7 0.00 -0.3 0.04 Using a 5% significance level, which stocks have significant two-factor alphas? (Select all that apply.) GE AAPL WMT AMZN

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Biblical Finance Reflections On Money Wealth And Possessions

Authors: Mark Lloydbottom, Keith Tondeur

1st Edition

0956395023, 978-0956395023

More Books

Students also viewed these Finance questions