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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?
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Applied Corporate Finance
Authors: Aswath Damodaran
4th edition
978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931
