Based on information below, please answers the questions. It is assumed that the market return is...

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Based on information below, please answers the questions. It is assumed that the market return is 12.6% and yield of government bond is 4%. . Calculate Ticker Symbol the significance and Resid -Std. Err.- Std of of Beta Alpha R-Sqr. Dev-N. Beta Alpha 00/03 Close Price of beta Adj. Beta cas 42.72 1.30 6.06 -1.15 2.44 1.93 m Num. of Obs. AALA AmerAlia GNLK GeneLink 2.250 -2.25 10.05 0.03 AOL America Online 67.438 2.40 4.12 0.290 -7.74 16.15 82.813 1.01 -0.57 11.125 1.13 -2.31 0.23 8.55 0.26 1.21 1.09 60 lpha, total risk of each stock, and the correlation based on the single index model. Further, calculate the intercept if stated in total return according to market model. 0.25 17.17 0.52 0.44 37.30 2.10 6.98 0.21 9.92 -4.79 General Mtrs 0.27 0.99 1.01 GM TSN Tyson Foods . According to CAPM, are the AALA stock and GNLK stock worth to buy? Explain. . Considering AOL stock, GM stock, and TSN stock, prove if there is an arbitrage opportunity. 60 60 17 60 Based on information below, please answers the questions. It is assumed that the market return is 12.6% and yield of government bond is 4%. . Calculate Ticker Symbol the significance and Resid -Std. Err.- Std of of Beta Alpha R-Sqr. Dev-N. Beta Alpha 00/03 Close Price of beta Adj. Beta cas 42.72 1.30 6.06 -1.15 2.44 1.93 m Num. of Obs. AALA AmerAlia GNLK GeneLink 2.250 -2.25 10.05 0.03 AOL America Online 67.438 2.40 4.12 0.290 -7.74 16.15 82.813 1.01 -0.57 11.125 1.13 -2.31 0.23 8.55 0.26 1.21 1.09 60 lpha, total risk of each stock, and the correlation based on the single index model. Further, calculate the intercept if stated in total return according to market model. 0.25 17.17 0.52 0.44 37.30 2.10 6.98 0.21 9.92 -4.79 General Mtrs 0.27 0.99 1.01 GM TSN Tyson Foods . According to CAPM, are the AALA stock and GNLK stock worth to buy? Explain. . Considering AOL stock, GM stock, and TSN stock, prove if there is an arbitrage opportunity. 60 60 17 60

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To calculate the significance of beta and alpha as well as the intercept in the total return according to the market model CAPM we need the following ... View the full answer