Use the information given in Problem 78 to estimate the regression of the monthly highest stock price
Question:
Use the information given in Problem 78 to estimate the regression of the monthly highest stock price on the risk-free interest rate.
Problem 78
Compute the correlation coefficient and the R2 between the monthly highest prices of a stock (y, unit: dollar) and risk-free interest rates (x, unit: %).
Transcribed Image Text:
X 1.70 1.74 1.75 1.91 2.17 2.06 2.04 1.93 1.88 1.92 1.90 1.91 y 12.5 12.1 11.9 17.4 24.8 19.3 19.5 18.2 17.6 19.6 25.2 31.3
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Related Book For
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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