Refer to the S&P data. Using S& P as your independent variable select two companies Apple (APPL) and Amazon (AMZN) and run a regression for the two companies while suppressing the intercept term.

(b) Interpret the results of your coefficients.

(c) Suppose you have been entrusted with the responsibility to manage a large amount of money, what managerial decision will you make in terms of investing the money in either of the companies? Why?

Where S& P is for stock market return, AMZN is for returns on Amazon stock, AAPL is for returns on Apple stock, and MSFT is for returns on Microsoft stock

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Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 S&P 28.6 21 -9.1 -11.9 -22.1 28.7 10.9 4.9 15.9 5.5 -37 26.5 15.1 2.1 16 32.4 AAPL 2.119048 1.51145 -0.71064 0.472269 -0.34566 0.491277 2.01357 1.232609 0.180136 1.334748 -0.56911 1.469033 0.530665 0.25558 0.314 0.054212 MSFT 1.146035 0.683641 -0.62848 0.527378 -0.21962 0.058801 -0.02375 -0.02133 0.141874 0.19223 -0.45393 0.567901 -0.08432 -0.06987 0.028891 0.400599 AMZN 9.6639 0.42179 -0.79557 -0.30474 0.745841 1.785601 -0.1583 0.064574 -0.1631 1.347694 -0.44646 1.623245 0.338091 -0.03833 0.449278 0.589628 Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 S&P 28.6 21 -9.1 -11.9 -22.1 28.7 10.9 4.9 15.9 5.5 -37 26.5 15.1 2.1 16 32.4 AAPL 2.119048 1.51145 -0.71064 0.472269 -0.34566 0.491277 2.01357 1.232609 0.180136 1.334748 -0.56911 1.469033 0.530665 0.25558 0.314 0.054212 MSFT 1.146035 0.683641 -0.62848 0.527378 -0.21962 0.058801 -0.02375 -0.02133 0.141874 0.19223 -0.45393 0.567901 -0.08432 -0.06987 0.028891 0.400599 AMZN 9.6639 0.42179 -0.79557 -0.30474 0.745841 1.785601 -0.1583 0.064574 -0.1631 1.347694 -0.44646 1.623245 0.338091 -0.03833 0.449278 0.589628

Answer rating: 100% (QA)

a Lets redraw the table for AAPL stock assigningxandyvariables Year SP x AAPL y x x y y bar x x y y ... View the full answer