Use the data to compute daily returns for Microsoft, the S&P index, and gold. Compute returns...
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Use the data to compute daily returns for Microsoft, the S&P index, and gold. Compute returns from the previous trading day's price to the current day's (You will lose one observation). The risk-free rate (^TNX) is already in daily percentage terms. Use the given risk-free rate (^TNX) to compute excess returns for MSFT and ^GC and the market risk premium for ^SPX. Use the "=slope" and "-intercept" formulas in excel to compute the beta and alpha of MSFT and ^GC. Interpret alpha and beta for each asset. Do these beta make sense to you? Why or why not? Use the data to compute daily returns for Microsoft, the S&P index, and gold. Compute returns from the previous trading day's price to the current day's (You will lose one observation). The risk-free rate (^TNX) is already in daily percentage terms. Use the given risk-free rate (^TNX) to compute excess returns for MSFT and ^GC and the market risk premium for ^SPX. Use the "=slope" and "-intercept" formulas in excel to compute the beta and alpha of MSFT and ^GC. Interpret alpha and beta for each asset. Do these beta make sense to you? Why or why not?
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Answer rating: 100% (QA)
To compute the daily returns for Microsoft MSFT the SP index SPX and gold GC you will need historical price data for each asset Lets assume you have t... View the full answer
Related Book For
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell
Posted Date:
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