Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

To estimate the CAPM model rA,trf,t=A+A(rMArf,t)+eA,A, for Apple inc, we use the simple return (percentage) calculated using the dally Yahoo Finance adjusted close prices, and

image text in transcribed
To estimate the CAPM model rA,trf,t=A+A(rMArf,t)+eA,A, for Apple inc, we use the simple return (percentage) calculated using the dally Yahoo Finance adjusted close prices, and the corresponding risk-free rate and market excess return from the FF Factors data provided in the model's file. For the period January 1,2019 to December 31,2022 , the estimated A is closest to the model R2 is closest to 6. For the same period, the estimated MKT for the FF 3 factor model rA,rf,t=A+MKT(rM,Arf,t)+SMBSMBt+BMLHMLt+eA,t is closest to and the model R2 is closest to

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_2

Step: 3

blur-text-image_3

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

The New Microfinance Handbook A Financial Market System Perspective

Authors: Joanna Ledgerwood, Julie Earne, Candace Nelson

1st Edition

0821389270, 978-0821389270

More Books

Students also viewed these Finance questions

Question

Describe the basic components of a wired LAN.

Answered: 1 week ago

Question

Design a training session to maximize learning. page 296

Answered: 1 week ago

Question

Design a cross-cultural preparation program. page 300

Answered: 1 week ago