As mentioned, spreadsheets can do the work for us of computing beta. Use Excels slope function to
Question:
As mentioned, spreadsheets can do the work for us of computing beta. Use Excel’s “slope” function to estimate the beta of Microsoft using the data in Table LE12.1. Use the “intercept” function to estimate the alpha or intercept term of the regression line.
Transcribed Image Text:
Rates of Product Market's Return of the S&P 500 Microsoft Returns Returns Squared X Month Х-Ахis Y-Axis -2.00% -1.70% 2.89% 3.40% -1.70 4.8 2.89 -8.16 -1.60 -6.00 2.56 9.6 1.2 -4.10 1.44 -4.92 1.7 2.89 1.7 6. 5.1 6.5 26.01 33.15 Sum X = 38.68% Sum X = 3.00% Sum Y = 0.20% Sum XY = 34.77% Estimating beta where n = 6 is the number of observations: ηΣxy- (Σχ) (Σy) ηΣx- (Σ)? 6(34.77) -(3.00)(0.20) 208.02 0.93 %3D 6(38.68) – (3.0)(3.0) 223.08 4)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (16 reviews)
SP 500 Microsoft Ret...View the full answer
Answered By
Simon kingori
I am a tier-one market researcher and content developer who has been in this field for the last six years. I’ve run the freelancing gamut; from market research, data mining and SEO/SMM to copywriting, Content Development, you name it, I’ve done it. I’m extremely motivated, organized and disciplined – you have to be to work from home. My experience in Freelancing is invaluable- but what makes me a cut above the rest is my passion to deliver quality results to all my clients- it’s important to note, I've never had a dissatisfied client. Backed by a Masters degree in Computer Science from MOI university, I have the required skill set and burning passion and desire to deliver the best results for my clients. This is the reason why I am a cut above the rest. Having taken a Bsc. in computer science and statistics, I deal with all round fields in the IT category. It is a field i enjoy working in as it is dynamic and new things present themselves every day for research and exploration.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Introduction to Finance Markets, Investments and Financial Management
ISBN: 978-1119398288
16th edition
Authors: Ronald W. Melicher, Edgar A. Norton
Question Posted:
Students also viewed these Business questions
-
Accounting for Research and Development Costs Czeslaw Corporations research and development department has an idea for a project it believes will culminate in a new product that would be very...
-
Use the same data as in Problem 1. Data as in Problem 1 Using the data in the student spreadsheet file P&G.xlsx (to find the student spreadsheets for Financial Analysis with Microsoft Excel, seventh...
-
Restaurants have traditionally used bottom-end wines to sell by the glass (BTG) at reasonably low prices per glass. In recent years, there has been a growing trend within the restaurant industry to...
-
Outline suggestions to make observation a useful, reliable requirements elicitation technique.
-
Let , , and be pairwise orthogonal vectors. If , , and w are all the same length, show that they all make the same angle with + + .
-
Can you identify a focused factory in a service facility? Explain.
-
The following data are for Marvin Department Store. The account balances (in thousands) are for 2017. 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. 2. Prepare the income...
-
The Dubuque Cement Company packs 80-pound bags of concrete mix. Time-study data for the filling activity are shown in the following table. Because of the high physical demands of the job, the...
-
K 1 A waffle recipe that serves 7 calls for 1 cups of flour. How many cups of flour will be needed if the chef must serve 28 people? 10- The chef needs cups of flour. (Type an integer or a simplified...
-
1. What ethical principles are involved in this mini-case study? What laws or regulations are involved? 2. Do the beverage companies have an ethical duty to their stakeholders to make a profit? 3. Do...
-
Below is nine months return data for Walgreens and the S&P 500. a. Estimate the intercept (alpha) and beta for Walgreens stock using spreadsheet functions. b. Interpret what the slope estimate means...
-
Youve collected data on the betas of various mutual funds. Each fund and its beta is listed below: Mutual Fund Beta Weak Fund....................0.23 Fido Fund......................0.77...
-
A model that allows major league baseball player salary to differ by position is where outfield is the base group. (i) State the null hypothesis that, controlling for other factors, catchers and...
-
Snowy Corporation allows customers to pay with credit cards. The credit card company charges 2.5% of the total sale. If Snowy makes a sale for $40,000, how much revenue will be recorded? Show your...
-
Mrs. Cabafranca is an Attorney III in Legal Service Department of the Department of Trade and Industry (DTI). She earns a monthly salary P59,353.00.She is a member of GSIS, Pag-IBIG, and PhilHealth....
-
Carol is o receive a payment of the end of each of the next 12 years from a trust account until the account is exhausted. The Balance is currently $212,000 and the rate of return is 9%. How much...
-
Assume sales of $11100, variable costs of $6500, and fixed costs of $2500. Calculate contribution margin and operating income.
-
Hamish Carter is employed as a parking attendant at Crowne Metro Hotel. During the 2023 income year, Hamish received the following amounts: Net Wages from Crowne (PAYGW of $11,000) $59,000 Tips from...
-
For each of the following cases, indicate the filing status for the taxpayer(s) for 2016 using the following legend: A - Single D - Head of household B - Married filing a joint return C - Married...
-
The landing gear of an aircraft with: mass of 2000 kg the spring-mass-damper system Consider that the runway surface is y(t) = 0.2 cos 157.08t stiffness of the spring is 5 x 105 N/m. What is the...
-
Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Codys basis in his stock is $20,000, Holbrooks AAA balance is $8,000, and Holbrook...
-
Vogel, Inc., an S corporation for five years, distributes a tract of land held as an investment to Jamari, its majority shareholder. The land was purchased for $45,000 ten years ago and is currently...
-
Jonas is a 60% owner of Ard, an S corporation. At the beginning of the year, his stock basis is zero. Jonass basis in a $20,000 loan made to Ard and evidenced by Ards note has been reduced to $0 by...
-
The SEC has considered moving from GAAP to IFRS and made some forward movement on this in the recent past, especially with convergence in the revenue recognition rules and the leasing rules. Although...
-
The accountant at The Lunch Lady is using a component of its organization-wide enterprise resource planning (ERP) system to prepare a payroll tax return. describe about the component of the system...
-
Refer to KVM company supplies goods to KOS company worth Php 7,200. KOS sells goods on behalf of the joint venture and realizes Php 5,000, KOS is entitled to a commission of 6% on sales. What should...
Study smarter with the SolutionInn App