I recently discovered a great new tool called Google Finance. Using Google Finance with the Google spreadsheet
Question:
I recently discovered a great new tool called Google Finance. Using Google Finance with the Google spreadsheet makes it possible to look up all kinds of data on mutual funds. So, of course I immediately started working with this tool and tried to predict the Morning Star ratings for mutual funds. The data set includes the following independent variables:
Net Asset Value ($1,000,000,000), 5-Year Total Return (%), Distribution Yield (%), and Expense Ratio (%).
a. Construct a regression model using all independent variables.
b. Interpret the meaning of the regression coefficients.
c. Predict the Morning Star rating for a mutual fund with $6 billion in net asset value, 11% five-year return, 2% distribution yield, and 0.4% expense ratio.
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Step by Step Answer:
a Set x 1 Net Asset Value x 2 5Year Total Return x 3 Distribution Yield x 4 Expense Ratio y 28649 00...View the full answer
