You have run a regression of monthly stock returns for Gym Place Holdings, a small playset manufacturing company against the S& P 500 over the years. The results are summarized below ReturnsGym Place = 0.0003 + 2.00 Returns S&P 500 R2=0.4 the standard error for the belo estimate 0.6 If you know that this stock had a monthly Jensen's alpha of 0.005 during the period of the regression . The 10- year U.S. treasury bond rate is 0.019 the German government Euro bond rate is 0.05 and Gym Place can borrow money at 0.06 in Euros ) . The risk premium ( Equity over risk free rate ) over the years in European markets is only 0.02 but the historical risk premium over the last 75 years in the United States is .0.0453

? Using Jensens alpha, What was the monthly risk free rate ? What was the annualized risk free rate during the last 5 years What is the upper bound in a 95 confidence interval for beta estimate ? What is the lower bound in a 95 confidence interval for beta estimate ? What is the firm specific risk ? What is the market risk Estimate a Euro cost of equity for Gym Place Holdings ? Using Jensens alpha, What was the monthly risk free rate ? What was the annualized risk free rate during the last 5 years What is the upper bound in a 95 confidence interval for beta estimate ? What is the lower bound in a 95 confidence interval for beta estimate ? What is the firm specific risk ? What is the market risk Estimate a Euro cost of equity for Gym Place Holdings