The attached Excel File contains information regarding the returns (%) on the S&9 500 Market Index and the returns (%) on Amazon Stocks over a period of time.

S&P500	Amazon
0.030	0.042
0.030	0.052
0.039	0.032
0.023	0.084
0.034	0.085
0.000	0.010
0.043	0.021
-0.006	-0.030
0.044	0.025
0.019	-0.013
0.035	0.016
0.008	-0.008
0.009	0.011
0.015	0.007
0.025	0.005
0.002	-0.001
-0.052	-0.055
0.021	0.029
0.058	0.045
0.028	0.027
0.078	0.072
-0.024	-0.023
0.066	0.049
0.007	-0.015
-0.048	-0.040
0.063	0.050
0.063	0.079
0.047	0.046
0.083	0.092
-0.065	-0.052
0.057	0.065
-0.039	-0.040
0.048	0.022
0.017	0.013
0.011	0.012
0.075	0.084
0.054	0.056
0.010	0.013
-0.021	-0.025
0.043	0.048
-0.013	-0.009

(1) Please run a regression with the returns on Amazon Stocks as the dependent variable and the returns on the S&P 500 as the independent variable and present your regression output.

(2) Are the intercept and slope coefficients statistically different from 0 at the 1%, 5%, and 10% levels?

(3) What does the R-square imply?

(4) Based on the regression results, what is the predicted return on Amazon Stock if the return on the S&P 500 is 10% (0.1)?

Answer rating: 100% (QA)

Solution Here is the output of the regression with returns on Amazon stocks as the depend... View the full answer