Question
You run a regression for a TESLA stock return on a market index and you find the following output: Multiple R 0.35 R-Square 0.12
You run a regression for a TESLA stock return on a market index and you find the following output: Multiple R 0.35 R-Square 0.12 Adjusted R-Square0.02 Standard Error 38.45 Observations 12 Coefficients Intercept 4.05 Market 1.32 Standard Error 15.44 0.97 t-Stat p-Value 0.26 0.80 1.36 0.10 Explain what is the alpha for TESLA stock and what does that mean? What is the relationship between TESLA stock return and market return? You run a regression for a TESLA stock return on a market index and you find the following output: Multiple R 0.35 R-Square 0.12 Adjusted R-Square0.02 Standard Error 38.45 Observations 12 Coefficients Intercept 4.05 Market 1.32 Standard Error 15.44 0.97 t-Stat p-Value 0.26 0.80 1.36 0.10 Explain what is the alpha for TESLA stock and what does that mean? What is the relationship between TESLA stock return and market return?
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Applied Corporate Finance
Authors: Aswath Damodaran
4th edition
ISBN: 978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931
