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This is all the information that is given, I will do my best to provide more info if needed. Preferred to be done in Excel.
This is all the information that is given, I will do my best to provide more info if needed. Preferred to be done in Excel. Thank you very much!
Calculate the 5-year monthly returns for Oracle Corporation (ORCL) ending on or around June 1, 2020. Calculate the corresponding 5-year monthly returns for the S&P 500 (GSPC). a) Calculate the covariance between the return series b) Calculate the Beta implied by that covariance c) Graph the returns with the S&P returns on the x-axis and the Oracle returns on the y-axis. Add a trendline. d) Use the regression tool (under Tools/Data Analysis) to calculate a regression with Oracle returns as the y-variable, S&P returns as the x- variable. e) What is the 95% confidence interval for your Beta? What does that mean? f) What proportion of the variance in Oracle's returns is explained by the CAPM? g) Given your calculated Beta, if you expect a 7% return for the S&P 500 over the next year, and if short term rates are currently at 0.5%, what returns do you expect for Oracle? Calculate the 5-year monthly returns for Oracle Corporation (ORCL) ending on or around June 1, 2020. Calculate the corresponding 5-year monthly returns for the S&P 500 (GSPC). a) Calculate the covariance between the return series b) Calculate the Beta implied by that covariance c) Graph the returns with the S&P returns on the x-axis and the Oracle returns on the y-axis. Add a trendline. d) Use the regression tool (under Tools/Data Analysis) to calculate a regression with Oracle returns as the y-variable, S&P returns as the x- variable. e) What is the 95% confidence interval for your Beta? What does that mean? f) What proportion of the variance in Oracle's returns is explained by the CAPM? g) Given your calculated Beta, if you expect a 7% return for the S&P 500 over the next year, and if short term rates are currently at 0.5%, what returns do you expect for OracleStep by Step Solution
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