Table 8.2 shows that the estimate of Boeings index-model (per month) regression was 1.1%. If the

Table 8.2 shows that the estimate of Boeing’s index-model α (per month) regression was 1.1%. If the monthly T-bill rate during this period was .2%, then what would you predict would be the value of ALPHA reported in a standard industry beta book?

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Ticker Company Beta Residual Alpha R-Square Std Dev Standard Error Standard Error Adjusted Beta Alpha Beta CPB Campbell Soup 0.247 0.001 0.012 0.064 0.292 0.009 0.498 NEM Newmont Mining 0.430 0.005 0.011 0.117 0.538 0.016 0.620 MCD McDonald's 0.563 0.006 0.165 0.036 0.165 0.005 0.709 SBUX Starbucks 0.581 0.004 0.112 0.046 0.212 0.006 0.721 KO Coca-Cola 0.663 -0.001 0.258 0.032 0.146 0.004 0.776 UNP Union Pacific 0.859 0.005 0.212 0.047 0.216 0.006 0.906 PFE Pfizer 0.895 -0.000 0.367 0.033 0.153 0.005 0.930 XOM ExxonMobil 0.920 -0.006 0.342 0.036 0.166 0.005 0.946 MSFT Microsoft 0.923 0.012 0.193 0.054 0.246 0.007 0.948 INTC Intel 0.934 0.007 0.187 0.055 0.254 0.007 0.956 GOOG Alphabet (Google) 0.960 0.008 0.209 0.053 0.243 0.007 0.973 DIS Walt Disney 1.288 -0.001 0.496 0.037 0.169 0.005 1.192 BAC Bank of America 1.357 0.003 0.270 0.063 0.291 0.009 1.238 BA Boeing 1.368 0.011 0.330 0.055 0.254 0.007 1.246 AMZN Amazon 1.533 0.019 0.286 0.069 0.315 0.009 1.355 MRO Marathon Oll 2.632 -0.023 0.314 0.110 0.506 0.015 2.088 AVERAGE 1.010 0.003 0.235 0.057 0.260 0.008 1.006 STD DEVIATION 0.560 0.009 0.127 0.025 0.115 0.003 0.374 Table 8.2