Question: Consider the two (excess return) index model regression results for A and B: RA = 1.5% + 1.7RM R-square = 0.622 Residual standard deviation =

Consider the two (excess return) index model regression results for A and B: RA = 1.5% + 1.7RM R-square = 0.622 Residual standard deviation = 12% RB = 2.4% + 1.3RM R-square = 0.468 Residual standard deviation = 9.8%

If r_f were constant at 5.5% and the regression had been run using total rather than excess returns, what would have been the regression intercept for stock A?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Consider the two (excess return) index model regression results for A and B: RA = 1.5% + 1.7RM R-square = 0.622 Residual standard deviation = 12% RB = -2.4% + 1.3Ry R-square = 0.468 Residual standard...

Consider the two (excess return) index model regression results for A and B : R A = 1.5% + 1.7 R M R -square = 0.622 Residual standard deviation = 12% R B = 2.4% + 1.3 R M R -square = 0.468 Residual...

Consider the two (excess return) index model regression results for A and B. RA = 1.5% + 1.7RM R-square= 0.622 Residual standard deviation = 12% RB = -2.4% + 1.3R R-square = 0.468 Residual standard...

1. Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3.4% + 1.15RM + eA RB = 1.5% + 1.30RM + eB M = 15.0%; R-squareA = 0.26; R-squareB...

1. Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3% + 1.00RM + eA RB = 1.0% + 1.30RM + eB M = 18%; R-squareA = 0.27; R-squareB =...

Consider the two (excess return) index model regression results for A and B: RA = 1.1% + 1.7RM R-square = 0.682 Residual standard deviation = 14% RB = 0.4% + 1.4RM R-square = 0.576 Residual standard...

Consider the two (excess return) index model regression results for A and B : R A = 1.1% + 1.7 R M R -square = 0.682 Residual standard deviation = 14% R B = 0.4% + 1.4 R M R -square = 0.576 Residual...

Consider the two (excess return) index model regression results for A and B : R A = 1.5% + 1.3 R M R -square = 0.658 Residual standard deviation = 13.2% R B = 0.8% + 0.95 R M R -square = 0.596...

Consider the two (excess return) index model regression results for A and B: RA = 1.5% + 1.3RM R-square = 0.658 Residual standard deviation = 13.2% RB = 0.8% + 0.95RM R-square = 0.596 Residual...

A cobalt (ii) solution wants to be examined by titration with 0.0415 M EDTA solution at ph 6.0. What will be the concentrations of cobalt(ii) ions in a titration of 30.0 ml and 0.0193 M cobalt (II)...

The following information has been collected regarding Burton Dee Company: Free cash flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Which one of the following is an example of a sunk cost? Group of answer choices $ 1 , 2 0 0 paid to repair a machine last year $ 2 0 , 0 0 0 project that must be forfeited if another project is...

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.