Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Using the regression output below, this model a good predictor and we would estimate the required return for the investment to be if the return

image text in transcribed
Using the regression output below, this model a good predictor and we would estimate the required return for the investment to be if the return on the market were to be 10%. State your answer as a percentage and not in decimal form (i.e. 13.21 not.1321). Hint: because the alpha is in decimal form, enter the expected market return as a decimal in your SCL. Regression Stats IR 0.9203 R2 10.8470 Adjusted R2 10.8394 SE of 2.3471 Regression Coefficients Intercept 0.0243 S&P 500 1.05 Standard Errort-Statistic 0.2879 4.2794 0.2641 4.9110 Ip-value 0.0001 0.0000 O is: 12.93% O is not: 12.93% O is not; 25.35% is: 25.35%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Using QuickBooks Accountant 2018 For Accounting

Authors: Glenn Owen

16th Edition

9780357042083

Students also viewed these Finance questions