Question
What is R-squared of your second regression? What are the values of intercept and the slope of your second regression? How they compare to the
What is R-squared of your second regression?
What are the values of intercept and the slope of your second regression?
How they compare to the risk-free rate and the historical mean of the market risk premium?
What do you conclude about the validity of CAPM for the chosen stocks?
Given data:
Rsquared of second regression = 0.00522789972544279
Intercept of second regression= 0.336921437573848
Slope of second regression = 3.79910698706242
Risk free rate = 0.0025/52 = 0.00004808
historical mean of the market risk premium = 0.000943478881848244
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Statistics For Business Decision Making And Analysis
Authors: Robert Stine, Dean Foster
2nd Edition
978-0321836519, 321836510, 978-0321890269
