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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
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.)
Group of answer choices
GE
AAPL
WMT
AMZN
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